- Dentsu revised its full-year operating income forecast to 107.10 billion yen, down from the previous forecast of 135.40 billion yen, missing the estimate of 128.15 billion yen.
- The company now expects net income of 36.70 billion yen, a significant decrease from the 61.70 billion yen it originally forecasted and below the estimate of 64.41 billion yen.
- Net sales are still projected to be 1.36 trillion yen, aligning with the estimate of 1.36 trillion yen.
- The dividend is forecasted to be 139.50 yen, slightly below the estimated 140.55 yen.
- For the second quarter, operating income was 11.24 billion yen, bouncing back from a loss of 4.32 billion yen year-over-year (y/y), but falling short of the 18.48 billion yen estimate.
- Net sales for the second quarter were 348.03 billion yen, up 17% y/y and above the estimate of 318.78 billion yen.
- Second quarter net income was 10.0 million yen, a steep decline from 3.44 billion yen y/y and below the 7.33 billion yen estimate.
- Japan’s business organic growth rate was +1.8%, down from +3.4% y/y.
- In the Americas, the organic growth rate was -3.7%, an improvement over last year’s -7.4% y/y.
- EMEA (Europe, Middle East, and Africa) saw an organic growth rate of 7.8%, up from -12.7% y/y.
- The APAC (Asia-Pacific) region, excluding Japan, recorded an organic growth rate of -6.2%, slightly better than last year’s -7% y/y.
- Analyst recommendations include 3 buys, 5 holds, and 1 sell.
A look at Dentsu Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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
Analysing the Smartkarma Smart Scores for Dentsu Inc, the long-term outlook appears promising. With a solid score of 5 in Growth, the company is projected to experience substantial development and expansion opportunities in the future. This signifies a positive trajectory for Dentsu Inc in terms of increasing market share and profitability over time.
Moreover, Dentsu Inc also demonstrates strength in other key areas, with scores of 4 in Dividend and Momentum, indicating a healthy dividend payout and strong market performance. These factors contribute to the overall positive outlook for the company, bolstered by its wide range of advertising, marketing, and event planning services provided across various regions globally, including the US, Europe, and Asia.
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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