Nissan Slashes Annual Profit Outlook By 14.5%
Portfolio Pulse from Shivani Kumaresan
Nissan Motor Co Ltd has revised its annual profit outlook downwards by 14.5%, reducing its operating profit forecast from 620 billion yen to 530 billion yen for the fiscal year ending March 31, 2024. The company also adjusted its annual revenue expectation to 12.6 trillion yen from 13 trillion yen and lowered its sales volume forecast to 3.44 million units from 3.55 million units. This revision follows a decrease in sales volume and various cost reliefs made to suppliers. Additionally, Nissan plans to introduce 30 new models by fiscal 2026, including 16 electric vehicles, aiming to boost sales and reduce the cost of EVs by 30% by 2030. Nissan shares dropped by 3.86% to $7.11 following the announcement.
April 19, 2024 | 4:51 pm
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NEGATIVE IMPACT
Nissan Motor Co Ltd has significantly reduced its profit outlook and adjusted revenue and sales volume forecasts for FY ending March 31, 2024, with shares dropping 3.86% to $7.11.
The downward revision in Nissan's financial forecasts, including a significant cut in its profit outlook and adjustments to revenue and sales volume, directly impacts investor sentiment and stock price. The immediate negative reaction in the stock market, with a 3.86% drop in share price, reflects concerns over the company's financial health and future performance. The announcement of new models and focus on electrification may offer long-term growth prospects, but the short-term impact is clearly negative due to the reduced financial expectations.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100