Hitachi (OTCMKTS:HTHIY) Shares Gap Down on Disappointing Earnings

Key Points

• Hitachi shares fell 11.7%, opening at $32.46 versus the prior close of $36.55, after the company reported weaker-than-expected quarterly results.
• Hitachi reported EPS of $0.32, below the $0.33 consensus estimate, while revenue of $18.40 billion also missed analyst expectations of $18.51 billion.
• Despite the earnings miss, analysts remain bullish: the stock has a consensus “Strong Buy” rating, including two Strong Buy and one Buy recommendation.

Hitachi Ltd. (OTCMKTS:HTHIY - Get Free Report) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $36.55, but opened at $32.46. Hitachi shares last traded at $32.3175, with a volume of 388,488 shares changing hands.

The conglomerate reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.33 by ($0.01). Hitachi had a return on equity of 12.07% and a net margin of 7.30%. The company had revenue of $18.40 billion for the quarter, compared to analyst estimates of $18.51 billion.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Zacks Research raised shares of Hitachi from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 2nd. Sanford C. Bernstein initiated coverage on shares of Hitachi in a report on Tuesday, September 15th. They set an "outperform" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Strong Buy".

Hitachi Trading Down 11.7%

The company has a market capitalization of $146.43 billion, a PE ratio of 27.83, a PEG ratio of 1.25 and a beta of 0.97. The stock has a fifty day moving average of $35.03 and a two-hundred day moving average of $32.55. The company has a current ratio of 1.09, a quick ratio of 0.83 and a debt-to-equity ratio of 0.08.

Hitachi Company Profile

Hitachi, Ltd. is a Japanese technology and engineering company that develops digital, infrastructure and industrial solutions for customers worldwide. Founded in 1910 and headquartered in Tokyo, the company has evolved from an electrical equipment manufacturer into a diversified provider of systems and services supporting social infrastructure and business operations.

Hitachi's principal activities include digital systems and services, energy systems, railway systems, industrial equipment and healthcare technology.

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