Earnings Alerts

Analysis of Dentsu Inc (4324) Earnings: Decline in 1Q Operating Income, but Forecast Remains Unchanged

  • Dentsu’s first quarter operating income is 14.49 billion yen. This is a decrease of 44% compared to the same period last year.
  • Net sales increased by 9.1% compared to the previous year, totaling 332.91 billion yen.
  • The company’s net income for the quarter is 5.55 billion yen, down 53% year-over-year.
  • In Japan, organic growth within the business increased by 2.4%, compared to a decrease of 0.2% the previous year.
  • There was a decrease in organic growth in the Americas, down 6.6% versus a decrease of 4.9% the previous year.
  • In the EMEA region, organic growth saw a decrease of 9.4%, in contrast to an increase of 3.4% the previous year.
  • The forecast for the year still predicts an operating income of 135.40 billion yen. There is a slight discrepancy compared to an estimate of 136.79 billion yen.
  • Net sales are still forecasted at 1.36 trillion yen, consistent with the estimated value.
  • The company still sees a net income of 61.70 billion yen for the year, compared to an estimate of 71.38 billion yen.
  • Dividends are still seen at 139.50 yen, slightly less than the estimation of 144.28 yen.
  • The company receives mixed reviews from analysts, with 3 buying, 3 holding, and 2 selling.
  • All comparisons are made against the company’s original disclosures from the previous year.

A look at Dentsu Inc Smart Scores

FactorScoreMagnitude
Value3
Dividend5
Growth5
Resilience2
Momentum5
OVERALL SMART SCORE4.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Dentsu Inc, a company primarily focused on offering comprehensive advertising services, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a high Dividend and Growth score of 5 each, Dentsu demonstrates strong potential for steady returns and expansion. Additionally, its Momentum score of 5 suggests a robust upward trend in the company’s performance. Although the Resilience score of 2 indicates some vulnerability, the overall outlook remains positive, especially with a Value score of 3.

Dentsu Inc‘s presence in the US, Europe, and Asia through its associated companies further strengthens its position in the global advertising market. By leveraging its expertise in marketing, event planning, and promotion services, Dentsu is well-positioned to capitalize on emerging opportunities and solidify its foothold in the industry. Overall, Dentsu Inc‘s Smartkarma Smart Scores highlight a company with strong growth prospects and a solid foundation for long-term success.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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