Nissan Chemical shares rose 17% Tuesday after the company reported third-quarter operating profit that exceeded analyst expectations.
The company posted an operating profit of ¥15.4 billion for the quarter, surpassing the consensus estimate of ¥13.1 billion. For the first three quarters combined, Nissan Chemical achieved an operating profit of ¥45 billion, exceeding its own guidance of ¥41.6 billion by ¥3.4 billion.
The strong performance was driven by the company’s performance materials segment, particularly semiconductor-related materials, which helped offset weakness in display materials that faced challenges from product mix headwinds.
The agrochemical segment also contributed positively to results, benefiting from domestic rice herbicides and European agrochemical products.
Despite the better-than-expected results through the third quarter, Nissan Chemical maintained its full-year operating profit guidance at ¥59 billion. This unchanged forecast implies a fourth-quarter operating profit of ¥14 billion, which is below the current analyst consensus of ¥17.6 billion.
The fourth quarter typically shows stronger sequential performance due to seasonality in the agrochemical business during the spring period.
