Investors Shrug Off A Soft Quarter From Yaskawa Electric

My biggest concern going into the calendar fourth quarter earnings cycle is that investor expectations for a 2020 recovery are set too high and that company guidance this time around may not be enough to support valuations that are already above historical averages. If Yaskawa Electric’s (OTCPK:YASKY) (6506.T) are anything to go by, those worries may be overdone.

Yaskawa had a soft quarter, but investors not only shrugged it off but seemed to embrace evidence that the worst is over … even though management’s guidance leaves a very challenging bar in place for the fiscal fourth quarter. While I still like Yaskawa’s business quite a bit, and I think the company is well-placed to leverage growth in automation across a range of industries (particularly in China), the valuation seems to already reflect that.

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Investors Shrug Off A Soft Quarter From Yaskawa Electric