Earnings Alerts

Ono Pharmaceutical (4528) Earnings: FY Forecast Misses Estimates with Significant Operating Income Decline

  • Ono Pharma forecasts its operating income at 85.00 billion yen, which is below the estimated 99.78 billion yen.
  • The company expects a net income of 67.00 billion yen, falling short of the 74.31 billion yen estimate.
  • Forecasted net sales are 490.00 billion yen, missing the expected 525.94 billion yen.
  • Ono Pharma anticipates a dividend of 80.00 yen, slightly higher than the estimated 77.78 yen.
  • In the fourth quarter, Ono Pharma reported an operating loss of 11.01 billion yen, compared to a profit of 15.31 billion yen in the previous year.
  • The fourth quarter also saw a net loss of 6.55 billion yen, whereas it recorded a profit of 17.43 billion yen the previous year.
  • Fourth-quarter net sales were 112.31 billion yen, slightly down by 0.4% year-on-year, but above the estimated 111.57 billion yen.
  • Annual operating income was 59.75 billion yen, a significant decline of 63% year-on-year, missing the estimate of 76.9 billion yen.
  • Annual net income dropped 61% year-on-year to 50.05 billion yen, just shy of the 54.41 billion yen estimate.
  • Total net sales for the year were 486.87 billion yen, a 3.1% decrease year-on-year, with slight variation from the 486.64 billion yen estimate.
  • Analyst recommendations include 3 buys, 6 holds, and 5 sells for Ono Pharma.

Ono Pharmaceutical on Smartkarma

Analysts on Smartkarma, such as Tina Banerjee, are closely following Ono Pharmaceutical (4528 JP) and providing valuable insights into the company’s performance. In a recent report titled “Ono Pharmaceutical (4528 JP): Struggle Continues with Opdivo; Competition and Price Cuts Loom Large,” Banerjee highlighted the challenges Ono Pharmaceutical is facing. The company’s revenue from its flagship drug, Opdivo, is slowing down, and there are concerns about potential competition and price cuts on the horizon.

With shares down 36% over the past year and limited growth prospects ahead, Ono Pharmaceutical faces a tough road ahead. The looming patent cliff in 2028 adds further pressure on the company. Analysts emphasize the importance of successfully commercializing new drugs to navigate this challenging period. Despite the current attractive valuation of Ono shares, the lack of near-term growth catalysts suggests limited upside potential in the foreseeable future.


A look at Ono Pharmaceutical Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth3
Resilience4
Momentum4
OVERALL SMART SCORE4.0

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

Ono Pharmaceutical is positioned with a promising long-term outlook, as indicated by its Smartkarma Smart Scores. With strong scores in key areas such as Dividend (5) and Value (4), the company showcases stability and attractiveness for investors seeking reliable returns. Additionally, its Resilience (4) and Momentum (4) scores suggest a well-founded ability to weather market fluctuations and maintain a steady growth trajectory. Although Growth (3) scored slightly lower, the overall outlook remains positive for Ono Pharmaceutical, making it an intriguing prospect in the pharmaceutical industry.

ONO PHARMACEUTICAL CO., LTD., a pharmaceutical company focusing on research and development of prescription drugs, stands out with its solid Smartkarma Smart Scores. With high marks in Dividend and Value, coupled with respectable scores in Resilience and Momentum, Ono Pharmaceutical demonstrates a robust foundation for long-term success. While Growth received a slightly lower score, the overall outlook remains optimistic, positioning the company as an appealing option for investors looking for stability and potential growth in the pharmaceutical 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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