- Net income for Itochu in 1Q 2024 was 206.60 billion yen, down 3.1% year-over-year and below the estimate of 221.33 billion yen.
- Operating income increased by 14% year-over-year, reaching 190.54 billion yen.
- Net sales were 3.60 trillion yen, up by 7.5% year-over-year.
- For the 2025 forecast, Itochu still expects net income to be 880.00 billion yen, below the estimate of 897.5 billion yen.
- The dividend forecast remains 200.00 yen per share, aligning with the estimate.
- Itochu plans to acquire up to 1.9% of its own shares, worth up to 150 billion yen.
- Itochu will launch a takeover bid for Descente at 4,350 yen per share, with a total purchase price of approximately 182.6 billion yen.
- Itochu will also initiate a takeover bid for Takiron C.I. at 870 yen per share, totaling 37.6 billion yen.
- Net income attributable to shareholders was 206.6 billion yen, achieving a progress rate of 23% against the FY2024 forecast, indicating a strong start.
- Gross profit and operating profit have increased across all operating segments, setting new record highs.
- Profits were bolstered by solid earnings in non-resource fields such as Machinery, Food, Information & Finance, and No. 8.
- Gross profit and operating profit exceeded 200 billion yen for three consecutive quarters.
- Core operating cash flow reached a record high of 238 billion yen.
- Market sentiment towards Itochu: 10 analysts rated it a ‘buy,’ 4 rated it ‘hold,’ and none rated it ‘sell.’
A look at Itochu Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
ITOCHU Corporation, a diversified general trading firm operating globally, has a mixed long-term outlook according to the Smartkarma Smart Scores. With a strong momentum score of 5, indicating positive price trends, Itochu Corp seems to be gaining traction in the market. Additionally, the company receives a high growth score of 4, suggesting potential for expansion and development in the future. However, other factors such as value, dividend, and resilience scores, standing at 3, 3, and 2 respectively, show some room for improvement in terms of value, dividend payouts, and overall resilience in the face of market challenges.
Despite some areas for enhancement, particularly in terms of resilience, Itochu Corp‘s high momentum and growth scores bode well for its long-term performance. The company’s diversified portfolio, which includes textiles, machinery, food, and energy-related products, along with its presence in satellite and data communication businesses, positions it reasonably well for sustained growth and market relevance in the coming years.
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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