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Why Kyocera Corp. Shares Rose 12% in April

By Anders Bylund – May 10, 2018 at 3:25PM

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The Japanese giant quietly posted a solid fourth-quarter report.

What happened

Shares of Japanese materials giant Kyocera (NYSE: KYO) gained 12.1% in April 2018, according to data from S&P Global Market Intelligence. The stock rode a strong fourth-quarter report to these gains despite zero coverage in the financial press.

So what

Kyocera posted fourth-quarter fiscal 2018 revenue of $4 billion. This represented an earnings-per-share (EPS) loss of $0.21; however, revenue grew 11.2% on a year-over-year basis. The company experienced "robust demand" from the automotive, industrial, and information technology sectors. These positive trends are expected to stick around for at least another fiscal year, and profits should rise in 2019. Share prices surged 12% higher the day after this report, based on action in the underlying shares on the Tokyo stock market. You'd never know it from American headlines.

Businessman shushing the viewer with a smile on his face.

Image source: Getty Images.

Now what

I find it downright strange that a household-name company with a $23 billion market cap and $15 billion in annual sales doesn't have a single analyst preparing quarterly earnings estimates for it. But that's the case with Kyocera, and you rarely see this company discussed as an investment.

That's a recipe for share-price imbalances, and I think Kyocera looks fairly inexpensive today. The stock trades at just 19 times forward earnings and 1.6 times trailing sales, and this stock certainly belongs on your watchlist for further analysis.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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