Nissan Shares Experience Sustained Gains Following Profit Forecast

Nissan Motor Co. Shares Surge After Earnings Outlook Revision

Nissan Motor Co. shares experienced a significant increase in early morning trading in Tokyo, climbing as much as 6.5% - the most since February 17 on an intraday basis. This surge came after the Japanese carmaker revised its earnings outlook, avoiding what could have been its first annual operating loss in five years.

According to Nissan, the company estimated it posted a full-year operating profit of ¥50 billion ($314 million), compared with its previous forecast for a ¥60 billion loss. The improvement in earnings was attributed to the removal of US emissions-related charges, a favorable foreign-exchange impact, and improved cost performance.

The revision in Nissan's earnings outlook is a rare bright spot for the carmaker, which has been struggling to reshape itself after failing to keep up with the industry's shift to electric vehicles and hybrids in Japan, China, and the US. However, it is worth noting that the revision mainly reflects non-core factors rather than a rebound in underlying demand.

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Nissan's management expects further gains from cost discipline, improved cash flow in the second half of the year, and incremental benefits from a refreshed product lineup. The final results are scheduled to be released on May 13.

Comparison of Nissan's Earnings Outcomes

Note: The estimated operating profit is ¥50 billion, a significant improvement from the previous forecast of a ¥60 billion loss.

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