Earnings Alerts

Daiichi Sankyo’s (4568) Earnings Fall Short of Expectations Despite Surge in Fourth Quarter Results

  • Daiichi Sankyo‘s operating income forecast is lower than estimates, with an expectation of 230.00 billion yen compared to the estimated 243.62 billion yen.
  • The net income for the company is also expected to be lower than estimates, at 190.00 billion yen instead of the expected 202.62 billion yen.
  • However, net sales are on target with an estimate and an actual expectation both standing at 1.75 trillion yen.
  • Daiichi Sankyo‘s projected dividend is higher than estimated, at 60.00 yen compared to the estimated 52.62 yen.
  • For the fourth quarter results, the operating income stands at 17.04 billion yen, in sharp contrast to last year’s loss of 6.55 billion yen.
  • Additionally, the fourth quarter also saw a massive rise in net income to 37.17 billion yen, indicating a 65% increase year-on-year.
  • In terms of net sales in the fourth quarter, they hit 428.42 billion yen, marking a 30% increase year-on-year.
  • The year’s results demonstrate that net sales rose to 1.60 trillion yen, marking a 25% increase year-on-year.
  • Overall, the company has 15 buy ratings, 2 hold ratings, and 0 sell ratings, indicating a generally positive outlook.

Daiichi Sankyo on Smartkarma

Analysts on Smartkarma have been closely following Daiichi Sankyo (4568 JP), with insights provided by Tina Banerjee shedding light on recent developments. In a report titled “Daiichi Sankyo (4568 JP): Second Time FY24 Guidance Raise; Event Heavy FY25 With 2 New Drug Approval,” the analyst highlights the company’s positive 3QFY24 results, attributing the growth to mainstay products like Enhertu and Lixiana. Daiichi Sankyo raised its revenue, core operating profit, and net profit forecasts, following FDA action dates for key drug candidates expected to impact the company’s future performance.

Furthermore, in a separate analysis titled “Daiichi Sankyo (4568 JP): Landmark ADC Deal Pushes FY24 Revenue Guidance Higher,” Tina Banerjee discusses a significant drug development deal with Merck, potentially worth up to $22 billion. This partnership has led to an increase in Daiichi Sankyo‘s FY24 revenue projections, with strong H1FY24 results indicating double-digit growth across key financial metrics. The collaboration and strategic agreements underline the company’s commitment to innovation and growth in the pharmaceutical sector.


A look at Daiichi Sankyo Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience4
Momentum5
OVERALL SMART SCORE3.4

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

Based on the Smartkarma Smart Scores, Daiichi Sankyo appears to have a positive long-term outlook. With strong scores in Growth, Resilience, and Momentum, the company shows promise for future profitability and stability. This indicates that Daiichi Sankyo may be well-positioned to expand its market presence, withstand economic challenges, and maintain a positive stock performance over time.

Daiichi Sankyo, a holding company formed from the merger of Sankyo and Daiichi pharmaceutical, focuses on manufacturing pharmaceuticals for human and veterinary use as well as medical tools and equipment. The Group’s diverse portfolio, including food, additives, feeds, and agrochemicals, highlights its commitment to innovation and global expansion, aligning well with its high scores in Growth and Resilience.


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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