Analyst Note| Richard Hilgert |
No-moat rated Nissan reported fiscal first-quarter 2021 earnings per share before special items of JPY 9.82, JPY 16.01 better than the FactSet consensus loss per share of JPY 6.19 and JPY 52.63 better than the JPY 42.81 loss per share reported in the heavily COVID-19-impacted year-ago period. While automotive revenue jumped 91% to JPY 1.74 trillion, consolidated volume rose 59% to 695 thousand vehicles. Revenue growth outperformed volume as average automotive revenue per unit improved 20% on favorable mix and pricing with a slight currency tailwind. Automotive operating profit was JPY 6.0 billion versus an operating loss of JPY 199.1 billion a year ago. The swing back into black was on operating leverage from higher volume as well as cost reductions versus the prior year when the pandemic shutdown production. Automotive liquidity remained healthy at JPY 3.7 trillion with JPY 1.7 trillion cash and JPY 2.0 trillion available credit.