- Trend Micro reported a 42% year-over-year increase in operating income for the second quarter of 2024, amounting to 12.31 billion yen (estimate: 12.25 billion yen).
- Net income for the same period rose by 30% year-over-year to 7.14 billion yen, although this fell short of the estimated 8.72 billion yen.
- Net sales increased by 13% year-over-year, reaching 68.60 billion yen, which surpassed the estimate of 65.98 billion yen.
- The company maintains its full-year operating income forecast at 52.90 billion yen, compared to the estimate of 49.64 billion yen.
- The net income forecast for the year remains at 34.60 billion yen, slightly above the estimate of 33.82 billion yen.
- Trend Micro continues to project net sales of 271.00 billion yen for the year, marginally higher than the estimate of 270.05 billion yen.
- Analyst recommendations for the company include 3 buys, 7 holds, and 2 sells.
Trend Micro Inc on Smartkarma
Analysts on Smartkarma are closely following Trend Micro Inc (4704), with Travis Lundy providing insights on the company. In his recent report titled “Trend Micro (4704) – In-Line Announcement Causes Selloff – Hopium Meets Reason,” Lundy discusses the impact of Trend Micro’s new Shareholder Return Policy. Initially, this policy led to a stock rally, but in-line announcements have now caused the stock to sell off. The analysis suggests uncertainty regarding the future direction of the stock, with mixed sentiments on whether it will bounce back or experience a significant decline.
Lundy’s research delves into the company’s recent decisions, including the special dividend, buyback, and in-line forecasts for 2024 earnings. Despite meeting expectations, the stock has experienced a notable decrease, indicating a disconnect between market expectations and the company’s performance. Investors are navigating the intersection of optimism (“hopium”) and reality (“reason”), highlighting the complexities surrounding Trend Micro Inc‘s current standing in the market.
A look at Trend Micro Inc Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 2 | |
Growth | 2 | |
Resilience | 5 | |
Momentum | 3 | |
OVERALL SMART SCORE | 2.8 |
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
According to Smartkarma Smart Scores, Trend Micro Inc has a mixed long-term outlook based on its scores in various factors. While the company received a strong score of 5 for Resilience, indicating its ability to withstand challenges, its scores in other areas like Value, Dividend, Growth, and Momentum were more moderate ranging from 2 to 3. Trend Micro Inc develops and sells anti-virus computer software and internet security products across regions like the United States, Europe, and Asia. This suggests that the company may have a stable foundation given its resilience score, but might need to focus on improving in other areas to drive future growth.
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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