Orix Corp Ads (NYSE:IX) Issues Quarterly Earnings Results, Beats Estimates By $0.41 EPS

Orix Corp Ads (NYSE:IX) posted its quarterly earnings results on Thursday. The real estate investment trust reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.41, Zacks reports. The business had revenue of $7.06 billion for the quarter, compared to analysts’ expectations of $7.37 billion. Orix Corp Ads had a return on equity of 13.08% and a net margin of 18.02%.

Here are the key takeaways from Orix Corp Ads’ conference call:

• Record first-quarter net income reached JPY 280.8 billion, up JPY 173.5 billion year over year and representing 53% of the unchanged JPY 530 billion full-year forecast.
• Core earnings improved across asset management, transportation and insurance, while capital recycling generated approximately JPY 300 billion of cash inflows. ORIX also completed the ORIX Bank transfer and agreed to acquire aircraft-parts company AerFin to expand its aviation value chain.
• Results remain highly exposed to Kioxia’s share price; JPY 540 billion of the JPY 840 billion first-half forecast is non-cash Kioxia-related gains. Management noted that the share-price decline since June could result in Kioxia-related valuation losses in the third quarter.
• ORIX changed its dividend policy to base shareholder distributions on adjusted profit excluding Kioxia-related gains and losses, while maintaining the higher-of-39%-payout-ratio or prior-year dividend framework. The interim dividend is forecast at JPY 107.27 per share, and JPY 78.4 billion of the planned JPY 250 billion buyback had been completed by the end of July.

Orix Corp Ads Trading Down 2.9%

Shares of NYSE:IX traded down $1.20 during midday trading on Friday, hitting $40.09. The company had a trading volume of 204,047 shares, compared to its average volume of 198,606. Orix Corp Ads has a 12 month low of $24.19 and a 12 month high of $42.39. The company has a current ratio of 1.77, a quick ratio of 1.73 and a debt-to-equity ratio of 1.30. The stock has a market cap of $44.51 billion, a price-to-earnings ratio of 11.07, a PEG ratio of 0.89 and a beta of 0.88. The firm has a fifty day simple moving average of $39.44 and a 200 day simple moving average of $35.20.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on IX. Weiss Ratings upgraded shares of Orix Corp Ads from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 29th. Wall Street Zen lowered shares of Orix Corp Ads from a “buy” rating to a “hold” rating in a research note on Sunday, June 7th. Finally, Zacks Research cut shares of Orix Corp Ads from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has an average rating of “Hold”.

Institutional Investors Weigh In On Orix Corp Ads

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC acquired a new position in Orix Corp Ads during the second quarter valued at approximately $247,000. Elevation Point Wealth Partners LLC bought a new stake in Orix Corp Ads in the fourth quarter valued at approximately $205,000. Bank of Montreal Can bought a new stake in Orix Corp Ads in the fourth quarter valued at approximately $207,000. PharVision Advisers LLC acquired a new stake in Orix Corp Ads in the third quarter worth $250,000. Finally, United Capital Financial Advisors LLC acquired a new stake in Orix Corp Ads in the third quarter worth $214,000. Institutional investors own 1.73% of the company’s stock.

About Orix Corp Ads

ORIX Corporation ADS (NYSE: IX) is the American depositary share listing of ORIX Corporation, a diversified financial services group headquartered in Tokyo, Japan. The company operates across multiple business lines that include leasing and lending, real estate, investment and asset management, and a range of retail and corporate financial services. ORIX’s ADS program allows U.S. investors to access ownership in the Tokyo-based group through shares traded on the New York Stock Exchange.

Core activities include equipment leasing and installment financing for corporate customers, corporate lending and structured finance, and real estate development and property management.