Seiko Epson Shares Jump After It Announces Buyback, Dividend Increase

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By Kosaku Narioka

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Seiko Epson Corp.’s shares rose sharply Friday morning after the Japanese printer maker announced a share buyback and a special dividend.

The shares were recently 8.3% higher at 2,114 yen after rising as much as 10% earlier.

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Seiko Epson said Thursday after the market closed that it would buy back up to 9.5% of its outstanding shares over the next year. The company said it may spend up to 30 billion yen ($234.7 million) for the repurchase program.

Seiko Epson also said it would pay a special dividend of Y10 a share for the fiscal year that started in April to commemorate the 80th anniversary of its founding. The company now plans to pay Y72 a share this fiscal year, up from the previous view of Y62 announced in late April.

The company’s leverage has fallen in recent years. Shareholders’ equity was 52.6% of total assets at the end of March, up from 47.4% a year earlier and 52.0% as of the end of March 2019, prior to the Covid-19 pandemic.

Seiko Epson said in late April that it expected revenue to rise 17% to Y1.320 trillion this fiscal year and net profit to fall 27% to Y67.00 billion, in part weighed by the higher costs of logistics.

The Topix subindex for electronics makers was recently 0.5% higher and the Nikkei Stock Average was up 1.1%.

Write to Kosaku Narioka at [email protected]

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Credit: www.marketwatch.com /

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