- 3Q EPS Forecast: Non-IFRS EPS forecast is EU0.28 to EU0.29, below the estimate of EU0.30.
- Operating Margin: Expected non-IFRS operating margin is between 29.4% to 30.2%, falling short of the 31.2% estimate.
- Revenue: Non-IFRS revenue forecast is EU1.47 billion to EU1.51 billion, slightly below the estimate of EU1.52 billion.
- Revenue Growth: Non-IFRS revenue growth at constant currencies is expected to be 4% to 7%, missing the 7.09% estimate.
- EPS Growth: Non-IFRS EPS at constant FX to increase by 1% to 6%.
- Full Year Guidance: Non-IFRS EPS forecasted to grow 6% to 9%, equaling EU1.27 to EU1.30, in line with the estimate of EU1.30.
- Full Year Revenue: Expected non-IFRS revenue for the year is EU6.26 billion to EU6.34 billion, close to the estimate of EU6.32 billion.
- Second Quarter Highlights:
- Non-IFRS EPS was EU0.30, meeting the estimate of EU0.30 and up from EU0.28 y/y.
- Non-IFRS net income was EU397.1 million, up 6.9% y/y but below the estimate of EU400.8 million.
- Non-IFRS operating margin was 29.9%, down from last year’s 31% and below the estimate of 31.4%.
- Non-IFRS revenue was EU1.50 billion, up 3.2% y/y but marginally below the estimate of EU1.52 billion.
- Non-IFRS Software revenue was EU1.35 billion, a 2.9% rise y/y but short of the EU1.37 billion estimate.
- Segment Performance:
- Licenses and other software revenue declined by 2.5% y/y to EU271.8 million, missing the EU280.6 million estimate.
- Subscription and support revenue grew by 4.3% y/y to EU1.07 billion, slightly below the EU1.11 billion estimate.
- Services revenue rose by 6.5% y/y to EU149.2 million, exceeding the EU147.5 million estimate.
- Industrial Innovation Revenue: Increased by 2.2% y/y to EU701.9 million, well below the estimate of EU763.6 million.
- Life Sciences Revenue: Decreased by 1.9% y/y to EU281.7 million, narrowly surpassing the estimate of EU279.7 million.
- Mainstream Innovation Revenue: Rose by 8.3% y/y to EU363 million, above the estimate of EU357.9 million.
- Contract Liabilities: Totaled EU1.62 billion, exceeding the estimate of EU1.55 billion.
- Operating Cash Flow: Net cash from operating activities was EU459.3 million, up 89% y/y but below the EU530.5 million estimate.
- Management Comments: CEO Daloz mentioned being on track to close deals delayed earlier and seeing improvement in the maturity of opportunities through the year.
- Guidance Update: Dassault Systèmes cut its full-year guidance in a preliminary update on July 9.
A look at Dassault Systemes Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Dassault Systemes, a software company focusing on innovation through its 3Dexperience platform, shows promising long-term prospects according to Smartkarma Smart Scores. With a Growth score of 4, the company is projected to experience significant expansion in the coming years, driving its market presence and profitability. Additionally, its Resilience score of 4 indicates a strong ability to weather challenges and maintain stability, which bodes well for sustained success.
Combining these strengths with a Momentum score of 3, Dassault Systemes demonstrates an upward trend in performance and market sentiment. While its Value and Dividend scores are moderate at 2, the overall outlook remains positive, positioning the company as a solid investment choice in the software industry.
**Summary:** Dassault Systemes, a software company known for its 3Dexperience platform, is set for long-term growth with a strong emphasis on innovation and resilience. Serving various industries globally, the company’s positive outlook, as indicated by Smartkarma Smart Scores, underscores its potential for sustained success in the competitive market.
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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