- Dassault Systèmes revised its full-year non-IFRS operating margin forecast to 32.3% – 32.6% from an earlier forecast of 32.6% – 32.9%.
- The company maintains its non-IFRS revenue forecast for the year slightly higher, seeing EU6.57 billion to EU6.67 billion.
- Non-IFRS EPS forecast remains unchanged at EU1.36 to EU1.39, with an expected constant currency growth of 7% to 10%.
- Full-year non-IFRS revenue is expected to grow by 6% to 8% at constant currencies.
- For the second quarter, Dassault predicts a non-IFRS operating margin of 29.8% to 29.9%.
- Second-quarter non-IFRS EPS guidance is EU0.3 to EU0.31.
- Second-quarter expectations for non-IFRS revenue are set between EU1.52 billion and EU1.58 billion.
- In the first quarter, the non-IFRS operating margin was slightly lower at 30.9%, compared to the 31.1% estimate.
- First-quarter non-IFRS operating income was up by 4.2% year-over-year, reaching EU486.1 million.
- Non-IFRS net income for the first quarter increased by 5.8% year-over-year to EU420.1 million.
- First-quarter non-IFRS revenue grew by 4.9% year-over-year to EU1.57 billion.
- Non-IFRS subscription and support revenue increased by 8.8% year-over-year in the first quarter.
- Non-IFRS Industrial Innovation software revenue was up by 8.4% year-over-year during the first quarter.
- Contract liabilities stood at EU1.72 billion, exceeding the estimate of EU1.68 billion.
- Operating activities generated net cash of EU813 million in the first quarter, a 21% year-over-year increase.
- Introduction of new tariffs has resulted in a more volatile market environment, potentially extending decision-making timelines.
- The company intends to invest in Gen 7 technology by slightly adjusting its operating margin target.
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Dassault Systemes on Smartkarma
Analyst coverage of Dassault Systèmes on Smartkarma reveals contrasting perspectives. Gregory Ramirez‘s bearish outlook highlights Siemens’ strategic move by acquiring Dotmatics for $5.1bn, expanding into life sciences and posing a challenge to industry leaders like Dassault Systèmes. With Siemens entering the sector, competition in the market, particularly against Dassault Systèmes’ Biovia and Medidata platforms, is expected to intensify.
On the other hand, Gregory Ramirez‘s bullish analysis sheds light on Dassault Systèmes SE’s innovative platform, 3D Universes, aiming to revolutionize product design. The integration of virtual twins, GenAI, and virtual companions enhances product lifecycle management, stands out in terms of regulatory compliance and intellectual property protection, and showcases growth potential through deals like the one with Volkswagen. This positive sentiment suggests promising revenue prospects and adoption across industries for Dassault Systèmes.
A look at Dassault Systemes Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Investors looking at the long-term outlook for Dassault Systemes based on the Smartkarma Smart Scores can find a positive picture painted for the company. With a solid score of 4 for Growth, Dassault Systemes is seen as having good potential for expanding its business and increasing its market share in the future. The company also scores a 4 for both Resilience and Momentum, indicating its ability to weather economic uncertainties and maintain a strong performance trend over time.
Although Dassault Systemes scores lower on Value and Dividend with 2s in each category, the favorable ratings for Growth, Resilience, and Momentum suggest a promising outlook for the software company. Dassault Systemes operates in various industries globally, offering its 3Dexperience platform to drive innovation in product and service development for sectors such as aerospace, construction, high-tech, and healthcare.
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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