SCREEN Holdings Co ((JP:7735)) has held its Q4 earnings call. Read on for the main highlights of the call.
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SCREEN Holdings Co. recently held its earnings call, presenting a generally positive outlook. The company reported record high sales and improved market share, particularly in the SPE segment, despite facing challenges such as decreased sales in North America and struggles in the PE segment. The overall sentiment was positive, driven by the company’s strong performance and strategic achievements.
Record High Sales and Profits
SCREEN Holdings achieved record high sales and profits for the fourth consecutive year, with net sales reaching JPY 625.2 billion and operating income at JPY 135.6 billion. This marks a significant increase from the previous year, showcasing the company’s robust financial health and operational efficiency.
Dividend Increase
The company announced a substantial increase in its year-end dividend payment to JPY 188 per share, surpassing the January forecast of JPY 163 per share. This brings the annual dividend payment to a record high of JPY 308 per share, reflecting the company’s commitment to delivering value to its shareholders.
Improved Market Share and Credit Rating
SCREEN Holdings saw a notable improvement in market share for its single-wafer cleaning equipment, along with an upgrade to an A+ credit rating by JCR. These achievements underscore the company’s competitive edge and financial stability.
Strong SPE Performance
The SPE segment was a major growth driver, with net sales of JPY 519.5 billion and an impressive operating margin of 26.4%. This segment’s performance highlights its critical role in the company’s overall success.
Positive Cash Flow
The company reported a smooth cash flow, with an operating cash flow of JPY 71.2 billion and a free cash flow of JPY 49.4 billion year-on-year. This positive cash flow situation provides SCREEN Holdings with the flexibility to invest in future growth opportunities.
Decreased Sales in North America
Despite the overall positive results, SCREEN Holdings experienced a decrease in sales in North America, with the regional sales composition dropping to 10%. This decline highlights the challenges faced in this market.
Challenges in PE Segment
The PE segment struggled with decreased sales and profit, attributed to delays in investment decisions by customers and a challenging market environment for printed circuit boards. This segment’s performance remains a concern for the company.
Impact of U.S. Tariffs
Looking ahead, SCREEN Holdings anticipates the impact of U.S. tariffs, particularly affecting the GA and FT segments. The business outlook for the next fiscal year includes conservative numbers due to these anticipated challenges.
Forward-Looking Guidance
For the fiscal year ending March 2025, SCREEN Holdings achieved record highs in sales and profits, driven by the SPE segment. Looking forward to fiscal year 2026, the company targets net sales of JPY 621 billion and operating income of JPY 117 billion, with a focus on strategic investments to sustain growth.
In conclusion, SCREEN Holdings’ earnings call reflected a positive sentiment, with record high sales and strategic achievements outweighing the challenges faced. The company’s strong performance in the SPE segment and improved market share are key highlights, while the anticipated impact of U.S. tariffs and struggles in the PE segment remain areas to watch. Overall, SCREEN Holdings appears well-positioned for continued success.