Earnings Alerts

Pan Pacific International Holdings (7532) Earnings: FY Operating Income Forecast Misses Estimates, But Sales and Dividends Beat Expectations

  • Pan Pacific’s forecasted operating income for the fiscal year is 150.00 billion yen, falling short of the estimated 151.74 billion yen.
  • Expected net income for the fiscal year is 86.50 billion yen, which does not meet the anticipated 96.35 billion yen.
  • Forecasted net sales for the fiscal year are 2.22 trillion yen, slightly exceeding the estimate of 2.21 trillion yen.
  • The expected dividend per share is 34.00 yen, surpassing the estimated 29.73 yen.
  • First Half Forecasts:
    • Net sales: 1.12 trillion yen
    • Operating income: 81.10 billion yen
    • Net income: 43.20 billion yen
  • Fourth Quarter Results:
    • Operating income: 29.93 billion yen, up 27% year-over-year (YoY), beating the estimate of 29.58 billion yen
    • Net income: 16.62 billion yen, up 13% YoY, exceeding the estimate of 12.97 billion yen
    • Net sales: 527.70 billion yen, up 10% YoY, above the estimate of 515.41 billion yen
  • Yearly Results:
    • Operating income: 140.19 billion yen, up 33% YoY, surpassing the estimate of 138.8 billion yen
    • Net income: 88.70 billion yen, up 34% YoY, above the estimate of 86.2 billion yen
    • Net sales: 2.10 trillion yen, up 8.2% YoY, marginally higher than the estimate of 2.09 trillion yen
  • Analyst Recommendations: 13 buys, 6 holds, 1 sell

Pan Pacific International Holdings on Smartkarma



Analyst coverage of Pan Pacific International Holdings on Smartkarma is positive and insightful. Michael Causton‘s research reports highlight the success of PPI’s subsidiary, Don Quijote, in attracting customers through discounted daily necessities and tourist toys. The company’s record results and expectations for future growth are driven by inflation pushing customers towards discount chains and increased sales to tourists. Causton emphasizes PPI’s expansion of private brand lines and food offerings as contributing factors to its strong performance.

In another report, Michael Causton discusses how PPI’s acquisition of Uny has revitalized the retailer’s performance by leveraging Don Quijote’s merchandising strategies and empowering staff with autonomy. Despite initial doubts about the acquisition, Uny is now showing renewed relevance under PPI’s management. The key to success lies in implementing Donki store principles, such as giving employees freedom and responsibility, leading to improved store profitability. The analyst sentiment is notably bullish on PPI’s growth prospects both domestically and internationally.



A look at Pan Pacific International Holdings Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.6

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

Analysts at Smartkarma have provided a holistic view of Pan Pacific International Holdings, offering insights into its long-term potential. The company, known for operating discount stores in Tokyo, has received mixed Smart Scores across different factors. While the company’s Growth score of 4 indicates strong potential for expansion and development, the scores for Value, Dividend, Resilience, and Momentum range between 2 and 3, suggesting room for improvement in these areas.

Considering the overall Smart Scores, Pan Pacific International Holdings seems to have a promising future, particularly in terms of growth opportunities. However, investors may want to keep an eye on increasing the value proposition, resilience, and momentum of the company to enhance its long-term performance and competitiveness in the 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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