- Fiscal Year Forecast Adjustments: Dassault Systemes has revised its full-year non-IFRS revenue growth forecast to 5% to 7% at constant currencies, down from a previous forecast of 6% to 8%.
- Operating Margin Expectations: The company anticipates a non-IFRS operating margin of 31.8% to 32.2%, slightly reduced from the prior range of 32% to 32.4%.
- Earnings Per Share (EPS) Projections: EPS at constant FX is expected to grow by 7% to 10%, a reduction from the previous 8% to 11% estimate. It remains stable at EU1.27 to EU1.30.
- Annual Revenue Range: The revised non-IFRS revenue forecast is between EU6.16 billion and EU6.28 billion, down from a prior projection of EU6.26 billion to EU6.34 billion.
- Fourth Quarter Focus: Q4 non-IFRS operating margin projection stands at 35.9% to 36.9%, with EPS forecasted at EU0.38 to EU0.41.
- Third Quarter Highlights:
- Non-IFRS EPS was recorded at EU0.29, matching the estimate and slightly exceeding last year’s EU0.28.
- Non-IFRS net income increased by 2.4% year-over-year to EU380.1 million.
- Revenue at constant currencies grew by 4%, slightly below the estimate of 4.94%.
- The operating margin for Q3 was 29.6%, down from 31% the previous year.
- Sector-Specific Performance:
- Industrial Innovation software revenue decreased by 2% year-over-year, impacted by market contraction.
- Mainstream Innovation software revenue increased significantly by 14% year-over-year.
- Life Sciences software revenue slightly declined by 1.2% year-over-year.
- Operating Cash Flow Concerns: Net cash from operating activities was EU217.6 million, a decline of 12% year-over-year.
- Market Dynamics: The revisions in guidance were influenced by the automotive market’s continued scrutiny and contraction in Europe and the US.
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
Based on the Smartkarma Smart Scores, Dassault Systemes, a software company, shows a positive long-term outlook. With a Growth score of 4 and a Resilience score of 4, the company is positioned well for future expansion and able to navigate through challenges effectively. The company focuses on offering its 3Dexperience platform for creating innovative products and services virtually, catering to various industries globally such as aerospace, construction, and healthcare.
Although the Value and Dividend scores are lower at 2, Dassault Systemes still holds promise for investors. Its Momentum score of 3 indicates a moderate positive market sentiment. Overall, the company’s strong emphasis on growth and resilience sets a solid foundation for its future performance and market presence in the software industry.
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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