- M3 Inc. projects a full-year operating income of 70.00 billion yen, which is below the expected 74.24 billion yen.
- The company anticipates net income of 45.00 billion yen, falling short of the 48.36 billion yen estimate.
- M3 Inc. forecasts net sales of 360.00 billion yen, exceeding the estimated 343.15 billion yen.
- First Half Forecast:
- Operating income is expected at 31.00 billion yen.
- Anticipated net income is 18.50 billion yen.
- Net sales are projected to reach 172.00 billion yen.
- Fourth Quarter Results:
- Net sales came in at 79.38 billion yen, showing a 33% year-over-year increase and surpassing the estimate of 77.21 billion yen.
- Operating income was 12.87 billion yen, a 37% increase year-over-year, but below the 15.76 billion yen estimate.
- Net income was 7.94 billion yen, down 8.3% year-over-year, falling short of the 10.26 billion yen estimate.
- Yearly Results by Segment:
- Medical Platform’s operating profit decreased by 12% year-over-year to 34.11 billion yen, missing the estimate of 35.52 billion yen.
- Evidence Solution’s operating profit dropped by 35% year-over-year to 4.35 billion yen, again falling short of the estimate of 4.59 billion yen.
- Overseas operating profit increased by 26% year-over-year to 14.75 billion yen, but did not meet the 16.27 billion yen estimate.
- Other Emerging Businesses turned profitable with a 1.00 billion yen operating profit against a loss of 290 million yen from the previous year, exceeding the estimate of 460 million yen.
- Career Solution experienced an 18% year-over-year increase in operating profit, totaling 5.66 billion yen, slightly below the estimate of 6.11 billion yen.
- Site Solution saw a 45% year-over-year rise in operating profit, reaching 5.42 billion yen and surpassing the estimate of 5.25 billion yen.
- The company has 7 buy ratings, 8 hold ratings, and no sell ratings from analysts.
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M3 Inc on Smartkarma
On Smartkarma, analyst Shifara Samsudeen, FCMA, CGMA, provides insightful coverage of M3 Inc. In a report titled “M3: ELAN Acquisition Drives Top Line Growth; Earnings Growth to Remain Weak,” it is noted that m3’s 3Q earnings exceeded estimates, with much of the top-line growth attributed to the ELAN acquisition. While there has been a slight improvement in Overseas earnings, the overall declining trend in earnings is expected to persist. Despite some positive growth indicators, the report suggests that earnings growth for M3 Inc may remain weak.
In another analysis by the same analyst titled “M3: Earnings Trend Downward, ELAN Acquisition to Further Dilute Margins,” it is highlighted that M3’s share price has dropped over 18% since its 2Q earnings release. Both revenue and operating profit fell below consensus, with concerns raised regarding the drop in operating profit margin. The report also mentions that the acquisition of ELAN is expected to dilute M3’s margins further. Overall, the coverage on Smartkarma provides a comprehensive view of M3 Inc‘s financial performance and strategic decisions, helping investors make informed decisions.
A look at M3 Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| 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
Analysts are cautiously optimistic about M3 Inc‘s long-term prospects, utilizing the Smartkarma Smart Scores as a guide. With moderate scores across several key factors, including Value, Dividend, and Growth, the company is seen as holding steady ground. Notably, M3 Inc shines in terms of Resilience, with a robust score indicating its ability to withstand challenging market conditions. Furthermore, the company’s Momentum score is the highest, suggesting a strong upward trend in performance.
As a supplier of medical information services to healthcare professionals, M3 Inc plays a vital role in supporting the marketing efforts of pharmaceutical companies and medical equipment manufacturers. This niche focus underscores the company’s commitment to the healthcare industry and positions it as an essential player in facilitating communication and information exchange within the medical sector.
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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