Olympus' year-on-year financials are strong, the firm is due to report its quarterly earnings tomorrow. Indicators are currently mixed.

Overview

Olympus Corporation is a Japanese leading manufacturer of optical and digital precision technology products. Olympus was first established in 1919, initially specialising in thermometers and microscopes. The company holds approximately a 70% share of the global endoscope market, which is valued at around $2.5 billion. The firm’s headquarters is based in Shinjuku City, Tokyo, Japan.

Financials

Looking at the financial results for the Fiscal year ended March 31^st, 2022, versus 2021. In 2022, total revenue grew by ¥138 billion with a rise of almost ¥72 billion in operating profit. Total comprehensive profit for the year totalled ¥161,001 billion, a 338.2% increase from the prior year. Earnings per share rose to ¥90.22 which is an ¥80.17 increase YoY, with the ratio of ‘operating profit to revenue’ coming in at 17.7% in 2022 against 11.2% in 2021. Additionally, total assets grew by ¥174,546 billion and as a result, the total equity of the company saw an increase of ¥115,882 year-on-year. Finally, cash and cash equivalents at the end of the year totalled ¥302,572 billion, an ¥85 billion increase YoY.

Technicals

From a technical aspect, the Japanese manufacturer's shares are currently trading at ¥2,978 a share. Towards the upside, resistance sits at ¥3,047 then at ¥3,104 then at ¥3,138. A break above these levels could see the stock climb towards the major resistance sitting at ¥3,198 (red oval). On the other hand, towards the downside, minor support sits at ¥2,951 then further support at ¥2924 then at ¥2865. A break below these support levels may see the stock fall towards the red trendline where the next major support level rests at ¥2,745. Looking at the indicators, MACD is currently negative but RSI is positive as it reads 55.

Summary

The stock is up 10.7% since the start of the year, the technical indicators are mixed at present but support seems established and it has been in a strong uptrend since March earlier this year. On the basis of the financials, the company has reported strong increases year-on-year in the majority of the financial departments. Revenue and profit growth was strong with a whopping rise in assets and equity. Overall, the stock and financials look healthy. However, Olympus is due to report its quarterly earnings tomorrow which may impact the direction of the stock in the mid-term.