- Strong 1Q earnings "TSE1 1Q recurring profits had increased more than 3.0-fold yoy as of
August 5, when about 70% of companies had reported (including financials and February and March year-ends). The results peak was July 30 and some 90% of TSE1 companies had reported by market cap. Sales were up 12% yoy and recurring profits up 214%. The progress
toward 1H guidance was ahead of the historical average, at 58.5%."
- But poor visibility for 2H "Upward revisions far exceed downward revisions. However,
companies seem cautious on 2H. Only 12% have raised full-year recurring profit guidance vs. 21% that have raised 1H guidance. (Downward revisions are 2.2% for 1H and 2.6% for the full year.) This could be explained by the yen’s appreciation since June and concerns of a global economic slowdown led by the US."
August 5, when about 70% of companies had reported (including financials and February and March year-ends). The results peak was July 30 and some 90% of TSE1 companies had reported by market cap. Sales were up 12% yoy and recurring profits up 214%. The progress
toward 1H guidance was ahead of the historical average, at 58.5%."
- But poor visibility for 2H "Upward revisions far exceed downward revisions. However,
companies seem cautious on 2H. Only 12% have raised full-year recurring profit guidance vs. 21% that have raised 1H guidance. (Downward revisions are 2.2% for 1H and 2.6% for the full year.) This could be explained by the yen’s appreciation since June and concerns of a global economic slowdown led by the US."
GoldmanSachs Japan Portfolio Strategy 20100806
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