Komatsu (OTCMKTS:KMTUY) Stock Price Down 7.7% After Earnings Miss

Key Points

• Komatsu shares fell 7.7% after the company reported quarterly earnings of $0.68 per share, missing analysts’ $0.72 consensus estimate. Trading volume was also 88% below the average session level.
• Despite the earnings miss, analyst sentiment remains positive: Citigroup and Goldman Sachs upgraded the stock to “strong buy,” while Zacks Research raised its rating to “hold.” MarketBeat’s average rating is “Buy.”
• Komatsu has a $36.69 billion market capitalization, a 14.45 price-to-earnings ratio and relatively low leverage, with a debt-to-equity ratio of 0.19.

Komatsu Ltd. (OTCMKTS:KMTUY - Get Free Report) shares traded down 7.7% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $38.4620 and last traded at $39.72. 16,147 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 129,330 shares. The stock had previously closed at $43.05.

The industrial products company reported $0.68 earnings per share for the quarter, missing analysts' consensus estimates of $0.72 by ($0.04). Komatsu had a return on equity of 10.51% and a net margin of 8.93%.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Citigroup upgraded shares of Komatsu from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 25th. The Goldman Sachs Group raised shares of Komatsu from a "hold" rating to a "strong-buy" rating in a report on Sunday, October 4th. Finally, Zacks Research upgraded shares of Komatsu from a "strong sell" rating to a "hold" rating in a report on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy".

Komatsu Stock Down 8.4%

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.96 and a quick ratio of 1.12. The company's 50-day simple moving average is $46.13 and its 200 day simple moving average is $43.13. The firm has a market cap of $36.69 billion, a P/E ratio of 14.45, a price-to-earnings-growth ratio of 2.30 and a beta of 1.07.

Komatsu Company Profile

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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