NJDCY - Nidec Harnessing Electric Motors As Growth Drivers

• Nidec had a strong fiscal third quarter despite weak results in the HDD motor business, with revenue and operating income both growing and beating expectations by a wide margin.
• Management maintained its FY25 target for e-axle shipments but noted ongoing strength in inquiries and customer production plans, while also acquiring a tooling business to support internal capacity needs.
• The EV opportunity is sexy, but the opportunity to grow share of DC brushless motors in appliances, tools, and industrial drives remains significant.
• Nidec is richly-valued, but there are many industrial stocks with similar return prospects and far less exciting growth and margin leverage opportunities.

For further details see: