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

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

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 Price Performance

NYSE IX traded down $1.20 on Friday, reaching $40.09. 204,047 shares of the company’s stock traded hands, compared to its average volume of 198,606. The stock has a market cap of $44.51 billion, a PE ratio of 11.07, a P/E/G ratio of 0.89 and a beta of 0.88. Orix Corp Ads has a 12 month low of $24.19 and a 12 month high of $42.39. The stock has a 50-day simple moving average of $39.44 and a 200 day simple moving average of $35.20. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.77 and a quick ratio of 1.73.

Analysts Set New Price Targets

IX has been the topic of several research analyst reports. Wall Street Zen cut Orix Corp Ads from a “buy” rating to a “hold” rating in a research report on Sunday, June 7th. Zacks Research downgraded shares of Orix Corp Ads from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 27th. Finally, Weiss Ratings raised Orix Corp Ads from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 29th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of “Hold”.

Institutional Investors Weigh In On Orix Corp Ads

A number of institutional investors have recently made changes to their positions in IX. Morgan Stanley grew its holdings in shares of Orix Corp Ads by 1.5% during the 4th quarter. Morgan Stanley now owns 5,117,942 shares of the real estate investment trust’s stock valued at $149,546,000 after purchasing an additional 74,473 shares during the last quarter. Bank of America Corp DE raised its position in Orix Corp Ads by 0.9% in the 3rd quarter. Bank of America Corp DE now owns 2,375,278 shares of the real estate investment trust’s stock worth $62,042,000 after purchasing an additional 21,330 shares during the period. Quantinno Capital Management LP lifted its stake in Orix Corp Ads by 88.2% in the second quarter. Quantinno Capital Management LP now owns 481,327 shares of the real estate investment trust’s stock worth $10,839,000 after purchasing an additional 225,580 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Orix Corp Ads by 29.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 284,170 shares of the real estate investment trust’s stock worth $8,303,000 after purchasing an additional 65,067 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in Orix Corp Ads by 13.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 236,604 shares of the real estate investment trust’s stock valued at $5,328,000 after buying an additional 28,894 shares during the period. Hedge funds and other institutional investors own 1.73% of the company’s stock.

Orix Corp Ads Company Profile

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.