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Nissan Motor Co Ltd 7201

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Morningstar’s Analysis

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Currency in JPY
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Nissan Q2 Results Mixed, Reduces Volume Outlook, Increases Profit Guidance; JPY 1,500 FVE Unchanged

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat-rated Nissan reported second-quarter 2021 EPS of JPY 13.83, handily beating the FactSet consensus loss per share of JPY 4.88 by JPY 18.71 and JPY 23.48 higher than the JPY 11.34 loss per share reported in the year-ago period. Pricing, mix, and cost savings from the Nissan Next turnaround plan were partially offset by constrained production from the microchip shortage. While automotive revenue rose by 1% to JPY 1.69 trillion, consolidated volume dropped 10% to 600,114 vehicles. Revenue growth outperformed volume as average automotive revenue per unit improved 12% on favorable mix and pricing, with a slight currency tailwind. Consolidated revenue of JPY 1.94 trillion missed consensus by 6%. Operating profit was JPY 63.4 billion versus an operating loss of JPY 4.8 billion a year ago as Nissan continues to focus on value over volume, enhancing price and reducing incentives.

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Company Profile

Business Description

While Nissan annually sells about 4 million vehicles, total 2020 Renault-Nissan-Mitsubishi alliance sales volume of 7.8 million vehicles makes the alliance the third largest vehicle group in the world, behind Toyota at 9.5 million and Volkswagen at 9.3 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases. In addition, the subsidiary also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by French automaker Renault, while Nissan in turn owns 15% of Renault. The Alliance also has controlling interests in AvtoVAZ (Lada) in Russia and Mitsubishi Motors in Japan.

Contact
1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi
Kanagawa, 220-8686, Japan
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Sep 30, 2021
Fiscal Year End Mar 31, 2020
Stock Type
Employees 147,553