Earnings Alerts

Rakuten (4755) Earnings: 1Q Net Sales Surpass Estimates, Despite Increased Net Loss

  • Rakuten‘s net sales for the first quarter exceeded estimates, coming in at 513.62 billion yen against an estimate of 506.22 billion yen.
  • The operating loss for the quarter was 33.27 billion yen, slightly more than the estimated loss of 30.17 billion yen.
  • The net loss for the period totaled 42.39 billion yen, which is higher than the estimated loss of 32.82 billion yen.
  • Despite these figures, the company received 6 buys, 11 holds, and 2 sells.

Rakuten on Smartkarma

Analyst coverage on Smartkarma highlights various perspectives on Rakuten (4755 JP). David Blennerhassett suggests buying Rakuten on dips if mobile business ownership is tolerable. Leonard Law, CFA, in his Morning Views, provides fundamental credit analysis and trade recommendations, focusing on key developments such as Rakuten. Travis Lundy delves into the complexity of Rakuten‘s proposal to combine its fintech businesses, foreseeing potential benefits amidst intricacies. Lundy further explores Rakuten‘s unconventional approach of seeking shareholder approval to issue “Bond-Type Shares,” aiming to strengthen its financial base differently.

The analysts’ insights on Smartkarma offer bullish sentiments towards Rakuten, with recommendations and analyses by Blennerhassett, Law, and Lundy providing investors with diverse perspectives on the company’s strategies and potential growth paths. Their reports on Rakuten‘s mobile business, fintech unit consolidation plans, and unique financial instruments offer a comprehensive view for investors seeking to understand the dynamics and future prospects of Rakuten in the market.


A look at Rakuten Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth2
Resilience4
Momentum5
OVERALL SMART SCORE3.0

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

Analysts utilizing the Smartkarma Smart Scores for Rakuten anticipate a promising long-term outlook for the company. With a high Momentum score of 5, Rakuten is showing strong positive market momentum, indicating potential growth opportunities in the future. The company’s Resilience score of 4 further reinforces its ability to weather market fluctuations and challenges, positioning Rakuten as a stable player in the industry.

Although Rakuten scores lower on the Dividend and Growth factors, with scores of 1 and 2 respectively, its Value score of 3 highlights the company’s attractiveness from a valuation perspective. This indicates that Rakuten may be trading at an attractive price compared to its intrinsic value. Overall, with a solid foundation in Internet finance and digital content services, Rakuten appears well-positioned to capitalize on its strengths for sustainable growth and success in the long term.

Summary: Rakuten Group, Inc. provides Internet services, including Internet finance services such as “Rakuten Card” and “Rakuten Bank”. Additionally, the company offers digital content services, including electronic book services, showcasing a diverse range of offerings in the online space.


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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