- Dassault Systèmes has revised its full-year non-IFRS operating margin forecast to 32.2% to 32.4%, down from a previous projection of 32.3% to 32.6%.
- For non-IFRS earnings per share (EPS), the new forecast is between €1.32 and €1.35, compared to an earlier projection of €1.36 to €1.39.
- The company now expects full-year non-IFRS revenue of €6.41 billion to €6.51 billion, lowered from the previous forecast of €6.57 billion to €6.67 billion.
- Dassault maintains its full-year non-IFRS EPS growth at constant exchange rates between 7% and 10%.
- Non-IFRS revenue growth at constant currencies for the year is expected to be 6% to 8%.
- For the third quarter, Dassault forecasts a non-IFRS operating margin of 29.7% to 29.9%, which is below the 30.8% estimate.
- Third-quarter non-IFRS EPS is projected at €0.29 to €0.30, against an estimate of €0.31.
- Third-quarter non-IFRS revenue is expected to be between €1.49 billion and €1.54 billion, slightly lower than the estimated €1.55 billion.
- For the second quarter, the non-IFRS operating margin was reported at 29.3%, down from 29.9% year-over-year and below the estimate of 29.9%.
- Second-quarter non-IFRS operating income was €446.1 million, a 0.4% decline year-over-year and below the €461.2 million estimate.
- Second-quarter non-IFRS net earnings were €391 million, down 1.5% year-over-year and below the estimated €401.4 million.
- Non-IFRS revenue at constant currencies grew 6% in the second quarter, surpassing the estimate of 5.16%.
- Second-quarter non-IFRS revenue amounted to €1.52 billion, marking a 1.8% increase year-over-year but falling short of the €1.55 billion estimate.
- Non-IFRS software revenue was €1.37 billion in the second quarter, up 2.1% year-over-year, slightly below the €1.39 billion estimate.
- License and other software revenues reached €275.6 million in the second quarter, showing a 1.4% year-over-year increase.
- Subscription and support revenue grew by 2.2% to €1.10 billion, just under the estimated €1.13 billion.
- In the second quarter, services revenue slightly decreased by 0.2% year-over-year to €148.9 million.
- Industrial Innovation software revenue increased by 6.1% to €744.6 million, exceeding the €737.3 million estimate.
- Life Sciences software revenue declined 4.8% to €268.3 million, below the estimated €279 million.
- Mainstream Innovation software revenue saw a slight year-over-year decline to €361.3 million, falling short of the €378.9 million estimate.
- Contract liabilities at the end of the second quarter were €1.56 billion, above the estimated €1.53 billion.
- Net cash provided by operating activities dropped 27% year-over-year to €334.3 million, below the estimate of €409.2 million.
- The company updated its currency assumptions for the second half of the year.
Dassault Systemes on Smartkarma
Analyst coverage on Dassault Systemes (DSY FP) on Smartkarma showcases various insights and sentiments from top independent analysts. Gregory Ramirez presents a bullish outlook with Dassault Systèmes focusing on subscription revenues, AI-powered technology, and strategic repositioning efforts to achieve long-term growth targets. In contrast, Ramirez’s bearish viewpoint discusses Siemens’ acquisition of Dotmatics, challenging Dassault Systemes in the life sciences sector and intensifying competition. Another bullish perspective from Gregory Ramirez highlights the significance of 3D Universes in revolutionizing product design and supporting the company’s growth through innovative platforms and strategic partnerships.
Baptista Research also provides optimistic coverage, emphasizing Dassault Systèmes’ strong financial performance, particularly the growth in software and subscription revenues driving overall earnings growth. The initiation of coverage highlights the pivotal role of recurring revenue in propelling Dassault Systemes’ future growth and positioning in the market. These diverse analyst opinions offer valuable insights into Dassault Systemes’ strategic direction, market positioning, and potential challenges and opportunities in the evolving business landscape.
A look at Dassault Systemes Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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
Smartkarma Smart Scores provide an insightful overview of Dassault Systemes’ long-term outlook. With a strong focus on growth and resilience, the company is positioned well for the future. Dassault Systemes scores high on Growth and Resilience, indicating a positive trajectory in terms of expanding its offerings and withstanding market challenges. This suggests that the company is well-equipped to adapt and thrive in dynamic industry landscapes.
Although Value and Dividend scores are moderate, the emphasis on Growth and Resilience bodes well for Dassault Systemes. The software company operates with a strategic vision to leverage its 3Dexperience platform across various industries, catering to the needs of sectors such as aerospace, construction, and healthcare. This diversified approach, coupled with a focus on innovation through virtual experiences, positions Dassault Systemes as a key player in driving technological advancements and product development in a wide range of sectors.
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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