Earnings Alerts

Puma (PUM) Earnings: 4Q Net Income Miss Short Against Estimates Amid Cost Control Initiatives

By January 23, 2025 No Comments
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  • Puma’s preliminary net income for the fourth quarter was €24 million, significantly below the estimated €54.5 million.
  • Preliminary sales for the fourth quarter reached €2.29 billion, which exceeded the estimate of €2.27 billion.
  • The company has initiated a Cost Efficiency Programme to improve financial performance.
  • Puma aims to achieve an EBIT margin of 8.5% by 2027 and is committed to reaching a 10% EBIT margin in the long term.
  • Further cost control measures will be implemented in 2025 to support these goals.
  • Fourth quarter preliminary currency-adjusted sales increased by 9.8%.
  • The full-year preliminary sales grew by approximately 4.4%, reaching €8.817 billion.
  • Full-year preliminary operating EBIT was reported at €622 million, consistent with the previous year.
  • The preliminary EBIT margin for the full year stands at 7.1%.
  • Full-year preliminary net income declined to €282 million from €305 million year-on-year, impacted by higher net interest expenses and non-controlling interests.
  • Fourth quarter preliminary operating EBIT improved to €109 million from €94 million year-on-year.
  • Analyst opinions are diverse, with 15 advising to buy, 12 to hold, and 1 to sell Puma shares.

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A look at Puma Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE3.2

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 the Smartkarma Smart Scores, Puma shows a promising long-term outlook. The company shines in growth and momentum, scoring a 4 on both factors. This suggests that Puma has strong potential for expansion and is currently exhibiting positive stock price trends. Additionally, with average scores in value and dividend at 3, Puma seems to present a balanced investment opportunity for those seeking value and income. However, the company’s resilience score of 2 indicates a slightly lower ability to withstand economic downturns compared to its peers.

Puma SE, known for designing, manufacturing, and selling sporting goods and apparels, offers products ranging from running and basketball shoes to t-shirts and accessories. With a global customer base, Puma is well-positioned in the sports industry to capitalize on its growth and momentum scores. Investors looking for a company with strong growth potential and positive market performance may find Puma an appealing investment option, given its favorable Smartkarma Smart Scores.


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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