Nissan Motor First-Quarter Results

Nissan Motor is set to release its first-quarter results on Wednesday. Below are the key details to keep in mind:

Net Profit Forecast

Analysts polled by FactSet expect Nissan to report a 68% increase in net profit, reaching ¥79.23 billion ($558.7 million) for the quarter ending in June. This compares to a profit of ¥47.11 billion in the same period last year.

Revenue Forecast

According to the FactSet poll, first-quarter revenue is estimated to have grown by 29% year-on-year, reaching ¥2.752 trillion.

What to Watch For:

Margin Trends

Investors will closely follow margin trends, as automakers worldwide grapple with rising costs of materials and parts. Nissan’s operating-profit margin improved from 2.9% in the previous fiscal year to 3.6% in the fiscal year ended in March.

Outlook

In May, Nissan projected a 21% increase in global sales to 4.0 million units for this fiscal year, accompanied by a 17% rise in revenue to ¥12.400 trillion and a 42% climb in net profit to ¥315.00 billion. Investors will be attentive for any updates to the annual guidance.

EV Initiatives

Updates on Nissan’s electric vehicle (EV) initiatives will be in focus, particularly after alliance partner Renault announced that Chief Executive Luca de Meo will lead its new EV subsidiary, Ampere, following its spin-off and listing later this year. Earlier this year, Nissan disclosed plans to invest up to 15% in Ampere as part of the alliance’s reorganization.