Ahead of earnings season, upward and downward revisions to full-year outlooks are emerging side by side. Reports have pointed to an anticipated upward revision and dividend increase at CREEK & RIVER Co., Ltd., as well as an anticipated downward earnings revision at Silicon Studio Corporation, with the market focused on changes in earnings guidance.
Around earnings season, revisions to earnings outlooks are reportedly diverging from company to company. An upward revision to CREEK & RIVER Co., Ltd.’s full-year forecast and a dividend increase have been the subject of speculation, while a downward earnings revision at Silicon Studio Corporation has also been anticipated. It has been pointed out that, during periods shaped by interest rates and index-related events, earnings-related news may produce a larger reaction than supply-and-demand factors.
The emergence of such news tends to make guidance changes, toward either more conservative or more bullish outlooks, spread to peer and related companies, prompting caution ahead of earnings announcements. The market appears to be entering a phase of increasingly selective stock-picking.
The focus going forward is expected to be on guidance updates around earnings announcements and trends in market reactions among companies reporting revisions.