CUC Inc. hits new all-time low on forecast of operating profit decline for fiscal year ending March 2027 due to upfront investments

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Fri May 1, 2026 10:16 am JST Catalyst

CUC Inc. <9158> hit its daily limit down, updating its all-time low for the first time in approximately three months. After the close of trading on April 30th, the company announced its consolidated earnings forecast for the fiscal year ending March 2027, projecting sales of 64.6 billion yen (up 18.9% year-on-year) and operating profit of 3.8 billion yen (down 34.3% year-on-year). The outlook for a decline in profit, reversing from the previous fiscal year's record high, has triggered heavy selling.

While revenue growth is expected to be secured through business expansion of existing facilities such as hospice-type housing and paid nursing homes, upfront investments including recruitment costs and initial expenses associated with opening new facilities are projected to weigh on profitability. The company maintained its no-dividend policy for the forecast period. Meanwhile, the company's fiscal 2026 results announced at the same time showed sales of 54.353 billion yen (up 15.5% from the previous year) and operating profit of 5.783 billion yen (up 8.2% from the previous year).

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.