TSE:1911Consumer Durables
Sumitomo Forestry (TSE:1911) Stock Faces Margin Squeeze Despite Revenue Surge
Sumitomo Forestry stock went into this earnings print with a flat week and modest gains over the past quarter, then met a results day that put profitability under the microscope. The headline is not the top line. The story is the margin squeeze. Quarterly net income came in at ¥10,127m on revenue of ¥731,185m, which leaves the trailing net profit margin at 3.5% compared with 5.1% a year earlier. For a housing and wood products group that relies on tight execution, that kind of earnings...