Canon Inc. American Depositary Shares Down 7.48% To $21.04 After Earnings Beat

Canon Inc. American Depositary Shares (CAJ) said before open Monday that it earned $0.72 per share in quarter four 2022.

On the revenue line, the company reported $10.5 billion, beating estimates by $1.3 billion.

In the same quarter a year ago, the company earned $0.47 per share on revenue of $7.7 billion.

The stock is down 7.48% to $21.04 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Hold which may get revised based on this new data.

InvestorsObserver gives the stock a Neutral Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 27. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Canon designs, manufactures, and distributes an extensive range of consumer and electronic products, including copiers, cameras, lenses, and inkjet printers. The company operates four major business segments: office, imaging systems, medical systems, and industry and others. Its global customer base and domestically concentrated operations create inherent currency exposure, which can cause performance to fluctuate. Canon's headquarters and 28 of its 46 manufacturing plants are in Japan, but nearly 80% of revenue is delivered from international markets. The firm has been expanding into new geographies and markets to mitigate this exposure.