• Trend Micro’s operating income in 1Q was 12.13 billion yen, showing a growth of 27% year over year but missed the estimated 12.63 billion yen.
• The net income for the same quarter reached 10.75 billion yen, which was an impressive growth of 69% year over year. This exceeded the estimated value of 8.69 billion yen.
• The net sales rose to 65.93 billion yen in 1Q, indicating a 12% year on year growth and outpacing the estimated 64.16 billion yen.
• Trend Micro continues to forecast an operating income of 52.90 billion yen, higher than the estimated 50.33 billion yen.
• Similarly, it also continues to predict a net income of 34.60 billion yen by the end of the year, above the estimated 33.55 billion yen.
• The company retains its net sales forecast at 271.00 billion yen, higher than the estimated 268.05 billion yen.
• The stock has 3 buy ratings, 6 hold ratings, and 2 sell ratings.
• All comparisons to past results are based on values reported by the company’s original disclosures.
Trend Micro Inc on Smartkarma
Analysts on Smartkarma have differing opinions on Trend Micro Inc (4704). Travis Lundy, in his report “Trend Micro (4704) – In-Line Announcement Causes Selloff – Hopium Meets Reason,” expressed a bearish sentiment. He noted that despite a stock rally following a new Shareholder Return Policy in November, in-line announcements recently caused the stock to sell off. Lundy highlighted uncertainty regarding the stock’s future movements, indicating a subdued outlook.
In contrast, Lundy’s report “Trend Micro BIG Bonanza But Shareholder AND Balance Sheet Structure Matter. N225 Divs Get a Fillip” presented a bullish view. He mentioned that Trend Micro had previously announced a less impressive shareholder return plan, leading to pressure for improvement. However, the recent announcement of a significant capital return plan with buyback and special dividends generated excitement, particularly among Nikkei 225 arbs. The differing analyses reflect the varying perspectives on Trend Micro’s performance and strategic decisions.
A look at Trend Micro Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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
In analyzing the long-term outlook for Trend Micro Inc using Smartkarma Smart Scores, a comprehensive assessment reveals a balanced performance across key factors. With scores of 2 for Value, Dividend, and Growth, the company demonstrates stability and modest potential in these areas. Notably, Trend Micro excels in Resilience with a high score of 5, indicating a strong ability to withstand market fluctuations and challenges. Additionally, the Momentum score of 4 reflects a positive trend in the company’s performance.
Trend Micro Incorporated, known for developing and marketing anti-virus and internet security software, operates across major markets including the United States, Europe, and Asia. With a solid foundation in security solutions, the company’s balanced Smartkarma Smart Scores suggest a steady outlook with particular strength in resilience, positioning Trend Micro well for long-term success in the cybersecurity industry.
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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