Business · Markets · 2 hrs ago

Kioxia shares fall as quarterly profit outlook disappoints

Kioxia shares fall as quarterly profit outlook disappoints

Kioxia shares fell as much as 15% in Tokyo on November 2 after the company announced its latest outlook.

The Japanese memory-chip maker had just reported record profits for July to September, with net profit of about 1.35 trillion yen.

Kioxia said growing demand for AI was helping its business expand.

For October to December, it forecasts net profit of about 1.36 trillion yen, only slightly above the previous quarter.

That outlook disappointed investors because it offered little quarter-to-quarter growth despite a forecast profit about 15 times higher than a year earlier.

Kioxia also announced its first dividend since listing, distributing 90 yen per share before a stock split, or 30 yen after the split.

The company’s October-to-December results will show whether its strong earnings continue.

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Yoshihiko KawamuraKioxia executive vice president
Growth is accelerating further against the backdrop of expanding AI demand
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Revenue was a record high
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Net profit was also a record high
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