- Rakuten reported an operating loss of 15.44 billion yen, which exceeded the estimated loss of 761.9 million yen.
- The Internet services segment achieved a profit of 16.88 billion yen before considering mobile ecosystem contributions, falling short of the estimated 20.2 billion yen.
- The Fintech segment outperformed expectations with a profit of 48.24 billion yen before mobile ecosystem contributions, surpassing the estimated 39.82 billion yen.
- The Mobile segment suffered a loss of 59.33 billion yen before considering mobile ecosystem contributions.
- Rakuten recorded a net loss of 73.47 billion yen, significantly higher than the estimated loss of 40.38 billion yen.
- Net sales totaled 562.70 billion yen, slightly below the estimated 568.13 billion yen.
- The Internet services segment’s revenue, including intersegment activities, was 305.48 billion yen, surpassing the estimate of 301.94 billion yen.
- The Mobile segment reported revenue of 110.71 billion yen, which did not meet the estimated 123.15 billion yen.
- The Fintech segment’s revenue, including intersegment activities, was 223.58 billion yen, exceeding the estimated 213.31 billion yen.
- Analyst recommendations include 7 buys, 9 holds, and 1 sell for Rakuten.
Rakuten on Smartkarma
Analyst coverage of Rakuten on Smartkarma provides a mixed outlook on the company. According to Tech Supply Chain Tracker, Rakuten is leveraging AI and O-RAN to lower telecom costs and target global growth, signaling a bullish sentiment towards the company’s strategies for efficiency and expansion. On the other hand, Michael Causton‘s report highlights Amazon’s dominant position in Japan’s e-commerce market, outpacing Rakuten in growth despite slower progress. This indicates a bearish view on Rakuten‘s performance compared to its competitors.
However, there are also positive reports on Rakuten‘s financial performance. Analyst Trung Nguyen from Lucror Analytics notes that Rakuten‘s Q4 and FY 2024 results were solid, with robust revenue growth and strong earnings improvement, achieving all of its financial targets for the year. Travis Lundy‘s analysis focuses on Rakuten‘s shareholder benefit plan, which aims to boost the stock price and increase mobile subscription numbers for 2025, suggesting a bullish sentiment towards the company’s strategic initiatives to attract and retain shareholders.
A look at Rakuten Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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 utilizing Smartkarma Smart Scores have evaluated Rakuten, giving it a mixed outlook for long-term performance. With a score of 3 in Value, the company is seen as moderately priced relative to its intrinsic value. However, in terms of Dividend, Rakuten receives a score of 1, indicating a lower focus on dividend payments to shareholders. On the positive side, Rakuten scores 3 in both Growth and Resilience, suggesting prospects for expansion and ability to weather economic uncertainties. Furthermore, with a Momentum score of 4, Rakuten exhibits strong positive price trends which may attract investor interest.
Rakuten Group, Inc., a provider of Internet services, offers a range of services including Internet finance services such as “Rakuten Card” and “Rakuten Bank,” along with digital content services like electronic book services. While the company shows potential for growth and resilience, the lower dividend score may deter income-seeking investors. The overall outlook for Rakuten, as indicated by the Smart Scores, hints at a company with room for improvement in certain areas but with positive momentum driving its stock performance.
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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