This article first appeared on GuruFocus .
Sanrio Co. ( SNROY ) shares swung sharply after the Hello Kitty owner gave investors a profit outlook that came in ahead of analyst expectations. The stock briefly jumped almost 12% in early Wednesday trading, marking its biggest intraday rise since February, before reversing to a 5% decline and later trading little changed by 10:57 a.m. Tokyo time.
Sanrio said it expects operating income of $554 million for the year ending March 2027, beating the average analyst estimate. The company also reported fourth-quarter net sales growth of 27% year-over-year, which came in above average projections and could point to continued strength in its character and intellectual property business.
The update came after Sanrio delayed its full-year results to investigate improper compensation involving a managing director, who the company said received around $1.68 million between 2023 and 2026 without proper approval. Aizawa Securities fund manager Ikuo Mitsui said some investors may have expected a stronger forecast, while Sanrio noted that brand momentum remained strong in North and South America, even as some licensees faced production and shipping delays or suspensions linked to US tariffs.
