LEC INC, The Current Fiscal Year Ordinary Profit Revised Upward to an Unexpected 27% Increase

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Fri Feb 7, 2025 4:30 pm JST Earnings

7874 LEC,INC. 【J-GAAP】

Earnings Report

LEC,INC. <7874> [TSE Prime] announced its financial results after the market closed on February 7th (16:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) increased 22.3% from the same period last year, reaching 2.56 billion yen.

In addition, the full-year consolidated ordinary profit has been revised upward 30.3%, from the previous forecast of 1.65 billion yen to 2.15 billion yen (compared to 1.68 billion yen in the previous period), turning to a 27.4% increase in the consolidated ordinary profit outlook.

Based on the full-year plan announced by the company after the upward revision, our estimate of the consolidated ordinary profit for the October to March period (2H) has been revised upward 7.1 times, from the previous forecast of 0.08 billion yen to 0.58 billion yen (compared to 0.64 billion yen in the same period of the previous year), and the declining rate is expected to decrease from 87.4% to 10.3%.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit decreased to 0.99 billion yen, a 6.0% decrease compared to the same period last year. However, the operating profit margin remained almost flat, changing from 6.3% in the same period last year to 6.4%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Dec, 2022	41,933	1,267	1,370	1,247	36.1	126.6	Feb 10, 2023	J-GAAP
Apr - Dec, 2023	46,394	1,996	2,093	1,024	29.5	124.1	Feb 9, 2024	J-GAAP
Apr - Dec, 2024	50,649	2,372	2,560	1,656	49.9	119.1	Feb 7, 2025	J-GAAP
YoY	+9.2%	+18.8%	+22.3%	+61.7%	+69.3%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	31,307	270	82	-121	-3.7	10	Nov 8, 2024	J-GAAP
Oct - Mar, 2024 New	32,307	770	582	179	5.5	10	Feb 7, 2025	J-GAAP
Revision Rate	+3.2%	+185.2%	+609.8%	－	－

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	64,000	1,500	1,650	1,000	30.8	20	Aug 9, 2024	J-GAAP
Mar, 2025 New	65,000	2,000	2,150	1,300	40.0	20	Feb 7, 2025	J-GAAP
Revision Rate	+1.6%	+33.3%	+30.3%	+30.0%	+30.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	31,095	692	649	322	9.3	10	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	32,307	770	582	179	5.5	10	Feb 7, 2025	J-GAAP
YoY	+3.9%	+11.3%	-10.3%	-44.4%	-40.4%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	55,461	911	1,082	942	27.2	20	May 12, 2023	J-GAAP
Mar, 2024	60,783	1,628	1,687	796	22.9	20	May 10, 2024	J-GAAP
Mar, 2025 Guidance	65,000	2,000	2,150	1,300	40.0	20	Feb 7, 2025	J-GAAP
YoY	+6.9%	+22.9%	+27.4%	+63.3%	+74.9%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	16,706	1,060	1,055	550	15.8	6.3	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	14,389	-368	-406	-228	-6.6	-2.6	May 10, 2024	J-GAAP
Apr - Jun, 2024	16,104	886	1,139	811	23.3	5.5	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	16,589	344	429	310	9.1	2.1	Nov 8, 2024	J-GAAP
Oct - Dec, 2024	17,956	1,142	992	535	16.1	6.4	Feb 7, 2025	J-GAAP
YoY	+7.5%	+7.7%	-6.0%	-2.7%	+1.8%