Canon Inc (NYSE:CAJ) stock rose 4.89% (As on January 31, 11:03:10 AM UTC-4, Source: Google Finance) after the company missed the market’s expectations for both topline and bottomline for the fourth quarter of FY 22. The income before income taxes increased by 16.4% year-on-year to ¥352.4 billion and net income attributable to Canon Inc. increased by 13.6% year-on-year to ¥244.0 billion.

CAJ in the fourth quarter of FY 22 has reported the adjusted earnings per share of 59 cents, missing the analysts’ estimates for the adjusted earnings per share of 68 cents. The company had reported the adjusted revenue of $8.19 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $9.23 billion.

Canon projects full year consolidated net sales to be in the range of ¥4,287.0 billion, a year-on-year increase of 6.3%; operating profit to be in the range of ¥360.0 billion, a year-on-year increase of 1.9%; income before income taxes of ¥390.0 billion, a year-on-year increase of 10.7%; and net income attributable to Canon Inc. to be in the range of ¥270.0 billion, a year-on-year increase of 10.7%

In the markets in which Canon operates, demand for office MFDs is expected to remain solid due to demand for high-productivity printing equipment. However, there are concerns that demand for laser printers and inkjet printers may be affected by the decrease in demand from customers working from home and the current economic slowdown. As for interchangeable-lens digital cameras, demand is expected to remain solid due to the need for high-quality visual expression. For network cameras, the market is expected to maintain stable growth due to the growing demand for video analysis and high value-added products. In addition, the market for professional video production equipment is expected to grow, supported by increasing demand for video content due to the spread of online video streaming. As for the medical equipment market, demand is expected to remain solid due to a recovery in large investments, mainly for diagnostic imaging unit products, previously held back due to the COVID-19 pandemic. For semiconductor lithography equipment, despite concerns of shrinking in some memory device market, demand of power devices is expected to remain solid. Furthermore, robust demand is expected to continue due to the spread of political initiatives repatriate semiconductor manufacturing capabilities. For FPD lithography equipment, there are concerns about a delay of investments of panel manufacturers mainly due to decreased demand from customers working from home amid the COVID-19 pandemic.