- Increased Dividend Forecast: Nexon has raised its full-year dividend forecast to 45.00 yen, up from the previous estimate of 30.00 yen and above analysts’ expectation of 28.13 yen.
- Improved Operating Income Projection: The company projects operating income for the fiscal year between 138.58 billion yen and 148.71 billion yen, exceeding the market estimate of 132.81 billion yen.
- Higher Net Income Forecast: Nexon anticipates net income ranging from 103.43 billion yen to 111.80 billion yen, surpassing the estimated figure of 96.1 billion yen.
- Increased Net Sales Outlook: The projected net sales for the year are between 467.30 billion yen and 480.84 billion yen, higher than the market projection of 460.62 billion yen.
- Fourth Quarter Dividend Expectation: Nexon sees a fourth-quarter dividend of 30.00 yen, double the previous amount of 15.00 yen.
- Third Quarter Performance:
- Operating income was reported at 37.53 billion yen, a 27% decline year-over-year, slightly below the estimate of 38.54 billion yen.
- Net income increased by 41% year-over-year to 38.17 billion yen, outperforming the anticipated 29.87 billion yen.
- Net sales fell 12% year-over-year to 118.72 billion yen, underperforming the estimate of 123.39 billion yen.
- Analyst Ratings: There are currently 7 buy ratings, 13 hold ratings, and 2 sell ratings for Nexon‘s stock.
Nexon on Smartkarma
Analyst coverage of Nexon on Smartkarma reveals contrasting views on the company’s future. Douglas Kim suggests a potential acquisition by Tencent, with the likelihood of Kim’s family members selling their stake in Nexon for around US$15 billion when the timing is right. On the other hand, Sanghyun Park presents a bearish perspective, providing insight into Tencent’s strategic moves regarding Nexon and emphasizing that Tencent is targeting a specific stake chunk without triggering a mandatory tender offer. Michael Allen, however, takes a bullish stance, highlighting Nexon‘s positive performance in beating Q1 consensus EBIT estimates and showcasing its immunity to tariffs and resilience during economic downturns.
A look at Nexon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| 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
Based on Smartkarma Smart Scores, Nexon Co., Ltd. shows a promising long-term outlook. With a strong resilience score of 5, the company is well-positioned to weather market uncertainties and economic fluctuations. This resilience indicates that Nexon has the ability to adapt and thrive in changing conditions, providing a stable foundation for future growth and performance.
Furthermore, Nexon demonstrates solid momentum with a score of 4, reflecting positive market sentiment and potential for continued upward movement. A growth score of 3 suggests that there are opportunities for expansion and development in the company’s future endeavors. While the value and dividend scores are more moderate at 2, they indicate a steady and reliable investment option.
Overall, Nexon Co., Ltd., a Japanese company specializing in online games for PC and mobile devices, presents a well-rounded profile with strengths in resilience and momentum, positioning it favorably for long-term success and growth in the dynamic gaming 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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