- Nexon reported an operating income of 37.70 billion yen for the second quarter, surpassing estimates of 28.54 billion yen, despite a 17% decline year-over-year.
- The company’s net income for the same period was 16.76 billion yen, falling short of the estimated 23.12 billion yen and marking a significant 58% drop year-over-year.
- Net sales were recorded at 118.85 billion yen, slightly down by 3% from the previous year, but exceeding the forecast of 105.38 billion yen.
- For the nine-month forecast, Nexon anticipates net sales ranging from 349.35 billion yen to 359.90 billion yen.
- Net income for the nine-month period is projected between 69.43 billion yen and 75.81 billion yen.
- Operating income for the same timeframe is expected to be between 112.04 billion yen and 120.46 billion yen.
- The company maintains a fourth-quarter dividend forecast of 15.00 yen per share.
- The dividend for the year is still set at 30.00 yen per share, above the estimated 28.67 yen.
- Investment analysts have provided mixed ratings: 8 buy recommendations, 10 hold recommendations, and 3 sell recommendations.
Nexon on Smartkarma
Independent analysts on Smartkarma have provided a range of insights on Nexon, the gaming company. Douglas Kim suggests a potential acquisition by Tencent, with Kim’s family members possibly selling their stake for about US$15 billion when the time is right. Tencent has shown interest in Nexon for years, but the timing and price haven’t aligned until now. Kim’s family holds a 44.4% stake in Nexon, with his wife and daughters owning a majority share in NXC Corp, Nexon‘s parent company.
On the other hand, Sanghyun Park takes a bearish stance, providing context on Tencent’s reported moves regarding Nexon. Park suggests that the government aims to sell a portion of NXC stake by 2027 for tax revenue, with Tencent eyeing a stake acquisition rather than a full buyout. This detailed look at the situation helps shed light on the nuances behind the scenes of potential dealings involving Nexon and Tencent.
A look at Nexon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
When looking at the long-term outlook for Nexon Co., Ltd., the company’s Smartkarma Smart Scores paint a positive picture. With a resilience score of 5, Nexon demonstrates a strong ability to withstand economic fluctuations and market challenges. This suggests that the company is well-positioned to navigate uncertainties and emerge stronger.
Additionally, Nexon‘s momentum score of 5 indicates a strong upward trend in the company’s performance, which could signify continued growth and profitability in the future. Alongside a growth score of 3, Nexon shows potential for expansion and development in the coming years. While the value and dividend scores are rated at 2 each, the overall outlook remains optimistic based on the combination of these scores.
Summary of Nexon Co., Ltd.: Nexon Co., Ltd. is primarily focused on developing and providing online games for PC and mobile platforms. The company, based in Japan, also extends its services to include online-gaming consultancy.
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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