- Rakuten‘s Q4 operating income significantly surpassed estimates at 104.04 billion yen against the expected 24.63 billion yen.
- Despite the strong operating income, Rakuten reported a net loss of 12.08 billion yen, contrasting with an anticipated profit of 24.06 billion yen.
- Q4 net sales were higher than expected, reaching 661.61 billion yen compared to the forecasted 651.99 billion yen.
- No dividends were declared for the year, consistent with the previous year.
- For the full year 2024, Rakuten‘s operating income was 52.98 billion yen, a turnaround from a loss of 212.86 billion yen the prior year, beating the estimated loss of 36.64 billion yen.
- The Internet services segment’s profit, before accounting for the mobile ecosystem, reached 96.94 billion yen, surpassing the 89.07 billion yen estimate.
- The Fintech segment also exceeded expectations with a profit of 167.99 billion yen, above the estimated 161.81 billion yen.
- The Mobile segment posted a notable loss of 235.35 billion yen, which was greater than the forecasted loss of 227.74 billion yen.
- Year-on-year net sales grew 10% to 2.28 trillion yen, slightly above the estimate of 2.26 trillion yen.
- Internet services segment revenue, including intersegment, increased by 5.8% year-on-year, aligning with the 1.28 trillion yen estimate.
- The Fintech segment revenue rose 13% year-on-year to 820.42 billion yen, slightly surpassing the forecast of 819.52 billion yen.
- The Mobile segment experienced significant growth with a 21% year-on-year increase in revenue to 440.70 billion yen, well above the estimate of 412.73 billion yen.
- Analyst opinions on Rakuten include 7 buy recommendations, 9 holds, and 1 sell.
Rakuten on Smartkarma
Analysts on Smartkarma have been actively covering Rakuten, providing valuable insights and research on the company. Travis Lundy‘s recent report discusses Rakuten‘s new Shareholder Benefit Plan, aimed at boosting shareholder engagement and potentially increasing mobile subscription numbers for 2025. Leonard Law, CFA from Lucror Analytics has also commented on Rakuten in a morning publication, highlighting the company among high yield issuers. Michael Causton‘s analysis focuses on Rakuten‘s upcoming launch of Rakuten Mart, an online supermarket that will compete with major players like Amazon and Aeon. Additionally, Business Breakdowns delves into Rakuten‘s role in Japan’s digital economy, emphasizing its diverse services and loyalty point system.
The coverage by these independent analysts showcases different perspectives on Rakuten‘s business strategies, market positioning, and future growth potential. With insights ranging from shareholder incentives to e-commerce expansion and digital transformation, investors can gain a comprehensive understanding of Rakuten‘s dynamics and competitive landscape. Overall, the analyst coverage on Smartkarma provides a well-rounded view of Rakuten, enabling investors to make informed decisions based on thorough research and analysis.
A look at Rakuten Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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 at Smartkarma have assessed Rakuten‘s long-term outlook using the Smart Scores, which provide a comprehensive overview of the company’s performance across various factors. Despite receiving moderate scores in areas like Value and Growth, Rakuten shines in terms of Resilience and Momentum, scoring impressively in both aspects. This suggests that while the company may not be undervalued or experiencing significant growth at the moment, it demonstrates strong resilience and positive momentum in the market.
Rakuten Group, Inc., known for its Internet services including Rakuten Card and Rakuten Bank, shows a mixed bag of scores indicating a stable yet dynamic future. With a low score in Dividend but strong showings in Resilience and Momentum, Rakuten appears poised for steady advancement and adaptability in the evolving digital landscape. Investors may find Rakuten‘s potential for sustained growth and market momentum promising in the long run.
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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