Komatsu (OTCMKTS:KMTUY) Shares Gap Down on Disappointing Earnings

Key Points

• Komatsu shares fell sharply after opening at $38.00 versus the prior close of $43.05, later trading at $39.09.
• The company reported quarterly EPS of $0.68, missing the $0.72 consensus estimate, while revenue of $7.07 billion exceeded expectations of $6.70 billion.
• Analyst sentiment remains positive overall: Goldman Sachs and Citigroup upgraded Komatsu to “strong buy,” while Zacks Research raised its rating to “hold,” resulting in an average “Buy” rating.

Komatsu Ltd. (OTCMKTS:KMTUY - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $43.05, but opened at $38.00. Komatsu shares last traded at $39.09, with a volume of 4,527 shares changing hands.

The industrial products company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $0.72 by ($0.04). The business had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.70 billion. Komatsu had a return on equity of 10.51% and a net margin of 8.93%.

Wall Street Analysts Forecast Growth

KMTUY has been the topic of several research analyst reports. The Goldman Sachs Group upgraded Komatsu from a "hold" rating to a "strong-buy" rating in a research note on Sunday, October 4th. Citigroup raised shares of Komatsu from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 25th. Finally, Zacks Research raised Komatsu from a "strong sell" rating to a "hold" rating in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Komatsu has an average rating of "Buy".

Komatsu Price Performance

The firm has a market cap of $36.32 billion, a price-to-earnings ratio of 14.30, a price-to-earnings-growth ratio of 2.33 and a beta of 1.07. The company's fifty day moving average is $46.03 and its two-hundred day moving average is $43.16. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.12 and a current ratio of 1.96.

About Komatsu

Komatsu Ltd. is a Japan-based manufacturer of construction, mining, forestry and industrial equipment. Its product portfolio includes hydraulic excavators, wheel loaders, bulldozers, motor graders, dump trucks, underground mining machinery and other equipment used in infrastructure development, resource extraction and material handling.

The company also provides equipment parts, maintenance and repair services, fleet-management technologies and digital solutions. Its Smart Construction platform is designed to help customers plan, monitor and improve job-site operations, while Komatsu develops automation and remote-control systems for construction and mining applications.

Komatsu traces its origins to Komatsu Iron Works, established in Ishikawa Prefecture, Japan, in 1921.

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