SoftBank Group shares fall after disappointing second-quarter results
SoftBank Group Corp.
shares fell sharply Monday morning after the Japanese technology investment company posted disappointing second-quarter results and failed to announce additional share buybacks.
The shares were recently 11% lower at 6,187 yen after falling as much as 12% earlier.
SoftBank Group said Friday after market close that it posted a net profit of 3.034 trillion yen ($21.84 billion) for the quarter ended Sept. 30, compared with a net loss a year earlier. That missed the net profit estimate of Y3.257 trillion taken from a poll of analysts by Quick.
While the company’s bottom line was boosted by gains of Y5.372 trillion from its previously announced plan to reduce its stake in Alibaba Group Holding Ltd., its Vision Funds business posted a loss of Y1.020 trillion in its second quarter as tech selloffs continued.
SoftBank Group said Thursday that it completed a Y400 billion share-repurchase program, raising hopes for more buybacks, but didn’t announce any on Friday.
Nomura analyst Daisaku Masuno said in a research note that losses from Vision Funds business were wider than Nomura had forecast and that the lack of a new buyback announcement was disappointing.
Investors may be more willing to consider SoftBank Group if it slows down, concentrates around a smaller set of key assets and deleverages, as it appears to be doing, said Deutsche Bank analyst Peter Milliken in a research note.