Japan’s second-largest automaker, Nissan, which is led by alliance CEO Carlos Ghosn reported that its profit increase exceeded its own estimates and soon the stock rose to an 11 month high.
During Tokyo trading, Nissan was up by 4.5% to 908 yen at 11:30 a.m., which would bring the biggest stock surge since last June, as the company said yesterday its fiscal year that ended March 31 brought a net income growth of 14% to 389 billion yen, with ofurth quarter profit alone reaching 114.9 billion yen.
“These numbers show Nissan at a turning point,” Max Warburton, auto analyst at Sanford C. Bernstein in Singapore, wrote in a report. The results “are enough to please this bull on the stock, as they at last see Nissan hit guidance – and indeed exceeded it! – after multiple misses and warnings.”
“We think it is totally possible for us to reach 8 percent market share by March 2017, but at the same time, we don’t make it a very solid objective, because we are always afraid of people perceiving growth and profitability as contradictory,” Ghosn said yesterday.
Nissan also forecast its worldwide sales would rise this fiscal year to 5.65 million vehicles, an increase of 8.9% over the same period last year, with revenue set to grow by 3% to 10.79 trillion yen and the company’s operating profit would also surge by 7% to 535 billion yen.