Orix Corp Ads (NYSE:IX) Posts Quarterly Earnings Results, Misses Estimates By $0.62 EPS

Key Points

• Quarterly earnings missed expectations: ORIX reported $0.93 per share versus the $1.55 consensus estimate, while revenue of $9.13 billion was slightly below forecasts of $9.20 billion.
• First-half net income hit a record ¥856.2 billion, but ¥538.7 billion came from Kioxia share-sale and valuation gains. ORIX expects about ¥190 billion in Kioxia-related losses in Q3, yet kept its ¥530 billion full-year net income forecast unchanged.
• Excluding Kioxia gains, adjusted first-half profit was ¥317.5 billion, supported by asset management and aircraft and ship businesses. ORIX also declared a ¥113.56 interim dividend and had completed 70% of its ¥250 billion share-buyback authorization by late October.

Orix Corp Ads (NYSE:IX - Get Free Report) announced its earnings results on Monday. The real estate investment trust reported $0.93 earnings per share for the quarter, missing analysts' consensus estimates of $1.55 by ($0.62), FiscalAI reports. The company had revenue of $9.13 billion during the quarter, compared to analyst estimates of $9.20 billion. Orix Corp Ads had a return on equity of 13.11% and a net margin of 18.02%.

Here are the key takeaways from Orix Corp Ads' conference call:

• First-half net income reached a record ¥856.2 billion, nearly three times the prior-year level, but ¥538.7 billion came from Kioxia share-sale and valuation gains, making reported earnings highly dependent on share-price movements.
• Adjusted first-half profit was ¥317.5 billion, with management citing strength in asset management, aircraft and ships; adjusted profit excluding Kioxia gains was progressing at about 49% of the full-year plan.
• ORIX expects about ¥190 billion of Kioxia sale and valuation losses in Q3 based on the September share price, and said the subsequent share-price decline could mean a larger impact. The company kept its ¥530 billion full-year net income forecast unchanged, citing uncertainty around further Kioxia movements.
• Greater China investments incurred impairments, including about ¥40 billion in Q2, as ORIX continues to review its exposure; management also said U.S. portfolio businesses remain challenging, with recovery at Hilco and Elawan uncertain.
• ORIX is expanding fee-based asset management, raising new U.S. funds and bringing external investors into battery-storage projects. It also declared a ¥113.56 interim dividend and had completed 70% of its ¥250 billion share-buyback authorization by the end of October.

Orix Corp Ads Stock Down 0.1%

Orix Corp Ads stock opened at $34.80 on Monday. The stock has a market cap of $38.64 billion, a P/E ratio of 9.61, a P/E/G ratio of 0.68 and a beta of 0.92. The company's 50-day moving average price is $37.94 and its two-hundred day moving average price is $36.18. The company has a quick ratio of 2.07, a current ratio of 2.15 and a debt-to-equity ratio of 1.20. Orix Corp Ads has a twelve month low of $24.81 and a twelve month high of $42.39.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on IX. Zacks Research downgraded Orix Corp Ads from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Weiss Ratings raised shares of Orix Corp Ads from a "hold (c+)" rating to a "buy (b)" rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, Orix Corp Ads currently has a consensus rating of "Moderate Buy".

About Orix Corp Ads

ORIX Corporation is a diversified financial services and investment company headquartered in Tokyo, Japan. Founded in 1964 as Orient Leasing, it initially focused on leasing and has since expanded into a broad range of financial and operating businesses.

The company provides leasing, lending, insurance, banking, and asset management services. Its activities also include real estate development and management, private equity and investment, aircraft leasing, and environmental and renewable energy projects.

ORIX serves customers and invests in businesses across Japan and international markets, including the Americas, Europe, the Middle East, and Asia-Pacific.

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