Canon Shares Jump After It Raises Earnings Guidance

By Kosaku Narioka

Canon Inc. shares rose sharply after it raised its fiscal-year earnings forecasts following strong second-quarter results thanks to greater sales of security cameras and chip-making equipment.

Shares were recently 8.3% higher at 4,692 yen on Friday morning after rising as much as 9.9% earlier.

The Japanese company said after Thursday's market close that net profit climbed 37% from a year earlier to Y89.86 billion, or the equivalent of $583.7 million, for the three months ended June 30. That beat the estimate for Y68.92 billion taken from a poll of analysts by data provider Quick.

Canon, which makes cameras, printers and medical and industrial equipment, said second-quarter revenue grew 14% to Y1.168 trillion as sales rose for security cameras and photolithography equipment used in semiconductor production. A weaker yen also helped its earnings, it said.

Canon raised its earnings forecasts for 2024. It now expects revenue to increase 10% to Y4.600 trillion and net profit to climb 27% to Y335.00 billion as it sees higher earnings from its printer and camera businesses.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

July 25, 2024 23:16 ET (03:16 GMT)

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