S E Corporation Revises Earnings Forecast — Net Profit Turns Negative on Deferred Tax Asset Write-off
S E Corporation (TSE:34230) has revised its earnings forecast for the fiscal year ending March 2026, citing a write-off of deferred tax assets along with changes in revenue and profit outlook.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 26.50bn | JPY 25.56bn | △JPY 938M (△3.5%) |
| Operating Profit | JPY 472M | JPY 573M | +JPY 101M (+21.5%) |
| Ordinary Income | JPY 438M | JPY 558M | +JPY 120M (+27.5%) |
| Net Profit | JPY 57M | △JPY 494M | — |
| EPS | JPY 1.91 per share | △JPY 16.36 per share | — |
The company attributed the downward revision in revenue to delays in project schedules, which pushed back delivery timelines. Operating profit and ordinary income were revised upward due to R&D expenditures being deferred to future periods. The sharp swing to a net loss was driven by a write-off of deferred tax assets of JPY 658M, as the company concluded it could not expect sufficient taxable income to recover them given future R&D cost burdens.
The revision highlights the outsized impact of the deferred tax asset write-off on S E Corporation’s bottom line, with net profit and EPS turning negative despite improved operational performance. Investors should note the divergence between operating profit (up) and net profit (deeply negative), driven entirely by this one-time tax accounting adjustment.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.