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.