- Dentsu revised its full-year net sales forecast to 1.43 trillion yen, previously estimated at 1.49 trillion yen. The new forecast aligns with market estimates.
- The company now expects an operating loss of 3.50 billion yen, a significant shift from the earlier projected profit of 66.00 billion yen and the market expectation of 76.33 billion yen.
- Dentsu anticipates a net loss of 75.40 billion yen for the fiscal year, in contrast to the prior profit expectation of 10.00 billion yen and the market estimate of 12.5 billion yen.
- In the second quarter, Dentsu reported an operating loss of 61.97 billion yen, compared to a profit of 11.24 billion yen the previous year and the estimated profit of 5.9 billion yen.
- The company’s net sales for the second quarter were 338.74 billion yen, a decline of 2.7% from the previous year, falling short of the market estimate of 345.79 billion yen.
- Dentsu recorded a net loss of 79.92 billion yen in the second quarter, compared to a profit of 10.0 million yen in the previous year.
- Analyst ratings for Dentsu include 3 buy recommendations, 4 hold recommendations, and 2 sell recommendations.
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Dentsu Inc on Smartkarma
Analyst coverage of Dentsu Inc on Smartkarma by Brian Freitas reveals a potential bearish sentiment surrounding the company. According to Freitas, Dentsu has been underperforming its peers and faces the risk of being deleted from a global index in August. The stock’s current positioning is believed to be smaller than passive selling, and it is trading at a cheaper valuation compared to its industry competitors. The recent decline in Dentsu Inc‘s stock price has raised concerns about its continued inclusion in the global index, making it a subject of interest for investors.
Freitas’s analysis highlights the relative underperformance of Dentsu Inc over the past year and suggests that there might be an opportunity for a strategic entry into the stock during a potential selloff. As one of the top independent analysts on Smartkarma, Freitas’s research provides valuable insights for investors looking to understand the dynamics impacting Dentsu Inc‘s stock price and its position within the global index. As the market anticipates the August index review, investors will be closely monitoring Dentsu Inc‘s performance amidst the concerns raised by Freitas regarding its potential exclusion.
A look at Dentsu Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 2 | |
| 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
Dentsu Inc, a company primarily focused on offering comprehensive advertising services along with marketing and event planning & promotion services, has been evaluated using the Smartkarma Smart Scores. The scores indicate the company’s long-term outlook across different factors. Notably, Dentsu Inc has received a high score of 5 for Dividend, reflecting strong performance in this area. On the other hand, the company scored lower on Growth, Resilience, and Momentum, with scores of 2 for each, suggesting areas that may need improvement to enhance its overall outlook.
Summing up the assessments, despite its strong Dividend score, Dentsu Inc‘s lower scores in Growth, Resilience, and Momentum highlight potential areas for development to bolster its long-term prospects in the evolving market landscape. With associated companies in key regions like the US, Europe, and Asia, Dentsu Inc may leverage its strengths in dividend payouts while focusing on enhancing growth, resilience, and momentum to solidify its position in the competitive advertising 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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