SoftBank Group (OTCMKTS:SFTBY) Posts Earnings Results, Misses Expectations By $0.55 EPS

Key Points

• SoftBank Group reported a quarterly loss of $0.62 per share, missing the consensus estimate of a $0.07 loss by $0.55. Its fiscal second-quarter net loss was about ¥1.12 trillion ($7 billion), versus a ¥2.5 trillion profit a year earlier.
• Investment losses, higher financing costs, and special losses related to U.S. data-center power-equipment plans contributed to the results.
• Jefferies upgraded SoftBank from “underperform” to “hold”; MarketBeat’s overall analyst rating is “Moderate Buy.”

SoftBank Group (OTCMKTS:SFTBY - Get Free Report) posted its quarterly earnings data on Tuesday. The technology company reported ($0.62) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.55), Zacks reports. SoftBank Group had a return on equity of 26.14% and a net margin of 62.60%.

SoftBank Group Price Performance

OTCMKTS SFTBY traded up $0.15 on Tuesday, reaching $11.89. 4,388,635 shares of the company's stock traded hands, compared to its average volume of 3,435,881. The stock has a market cap of $135.83 billion, a PE ratio of 4.20 and a beta of 2.07. SoftBank Group has a 12 month low of $10.55 and a 12 month high of $28.97. The stock has a 50-day simple moving average of $17.35 and a 200 day simple moving average of $16.71. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.68 and a quick ratio of 0.67.

Trending Headlines about SoftBank Group

Here are the key news stories impacting SoftBank Group this week:

• Positive Sentiment: An overnight Wall Street rebound lifted Asian technology shares, with a report saying SoftBank shares rallied alongside the sector. SoftBank shares surge as Asian tech stocks rally
• Negative Sentiment: SoftBank reported a fiscal second-quarter net loss of about ¥1.12 trillion ($7 billion), reversing a ¥2.5 trillion profit a year earlier. Investment losses, higher financing costs, and special losses tied to changes in procurement plans for U.S. data-center power equipment contributed to the result. SoftBank posts quarterly loss on U.S. data-center project losses
• Negative Sentiment: The company’s reported loss per share of $0.62 also missed the consensus estimate of a $0.07 loss, underscoring the scale of the earnings shortfall. SoftBank quarterly earnings
• Negative Sentiment: Coverage contrasted SoftBank’s results with TSMC’s strong revenue, emphasizing a widening gap between AI-related winners and companies exposed to investment losses and infrastructure setbacks. TSMC and SoftBank reveal a chasm between AI winners and losers

Wall Street Analyst Weigh In

Separately, Jefferies Financial Group upgraded SoftBank Group from an "underperform" rating to a "hold" rating in a research report on Wednesday, October 28th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy".

SoftBank Group Company Profile

SoftBank Group is a Japan-based holding company focused on technology businesses and investments. Founded in 1981 by Masayoshi Son, it began as a software distributor and expanded into telecommunications and a broad portfolio of technology-related businesses.

The group's activities include operating and investing in companies involved in mobile and broadband communications, internet services, artificial intelligence, semiconductors, and other technology fields. Its portfolio includes Arm, a semiconductor and software-design company, and it invests in businesses through vehicles such as the SoftBank Vision Funds.

SoftBank Group has operations and investments across Japan and international markets.

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