Earnings Alerts

Rakuten (4755) Earnings: Surpassing 4Q Estimates with Strong Operating Income and Sales Growth

By February 14, 2025 No Comments
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  • Rakuten‘s fourth quarter operating income significantly surpassed estimates at 104.04 billion yen, compared to the projected 24.63 billion yen.
  • The company reported a net loss of 12.08 billion yen, contrary to the estimated profit of 24.06 billion yen.
  • Net sales for the fourth quarter stood at 661.61 billion yen, exceeding the estimate of 651.99 billion yen.
  • No dividend was issued at the end of the 2024 fiscal year, with a declared dividend of 0.0 yen.
  • For the 2024 fiscal year, Rakuten‘s operating income recorded at 52.98 billion yen, defying expectations of a loss at 36.64 billion yen.
  • The Internet services segment posted a profit of 85.14 billion yen, slightly below the estimated 89.07 billion yen, when excluding mobile ecosystem contributions.
  • The Fintech segment saw a profit of 153.38 billion yen, falling short of the anticipated 161.81 billion yen, excluding mobile ecosystem input.
  • The mobile segment incurred a loss of 208.93 billion yen, which was better than the projected loss of 227.74 billion yen, without considering the mobile ecosystem’s impact.
  • Annual net sales amounted to 2.28 trillion yen, surpassing the estimate of 2.26 trillion yen.
  • Internet services segment revenue, including intersegment sales, matched estimates at 1.28 trillion yen.
  • Fintech segment revenue, including intersegment figures, totaled 820.42 billion yen, slightly above the estimated 819.52 billion yen.
  • Mobile segment revenue, including intersegment transactions, reached 440.70 billion yen, exceeding the forecast of 412.73 billion yen.
  • Market analysts have given Rakuten 7 buy ratings, 9 hold ratings, and 1 sell rating.

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Rakuten on Smartkarma

Analyzing the analyst coverage of Rakuten on Smartkarma reveals a positive sentiment towards the company’s recent strategic moves. Travis Lundy‘s report highlights Rakuten‘s new Shareholder Benefit Plan, offering a free mobile plan to shareholders as a way to boost stock prices and increase mobile subscribers for 2025. Leonard Law, CFA, in the Morning Views publication, also mentions Rakuten as a high yield issuer, indicating positive developments within the company. Furthermore, Michael Causton‘s analysis focuses on Rakuten Mart, an upcoming online supermarket launch that is set to compete with major players like Amazon and Aeon, showcasing Rakuten‘s resilience in the e-commerce space despite criticism of its mobile business.

The collective analyst coverage on Rakuten from Smartkarma providers like Travis Lundy, Leonard Law, CFA, and Michael Causton underscores a bullish outlook on the company’s growth prospects and innovative business strategies. Despite challenges in expanding globally, Rakuten‘s core e-commerce operations and upcoming ventures like Rakuten Mart are positioned to strengthen its market presence and competitiveness against key industry players. Additionally, insights from Business Breakdowns highlight Rakuten‘s unique loyalty point system and diverse service offerings, illustrating its significant presence in Japan’s digital economy landscape.


A look at Rakuten Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth2
Resilience4
Momentum4
OVERALL SMART SCORE2.6

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

Looking at the Smartkarma Smart Scores for Rakuten, it indicates a mixed long-term outlook for the company. While Rakuten scores high in Resilience and Momentum, showing strong stability and growth potential, it fares lower in Value, Dividend, and Growth factors. This suggests that while Rakuten may have a solid foundation and good momentum in the market, there may be limitations in terms of its value, dividend payouts, and growth prospects in comparison to its peers.

Rakuten Group, Inc. is primarily focused on providing Internet services such as financial services through “Rakuten Card” and “Rakuten Bank”, as well as digital content services including electronic books. With a Smart Score breakdown highlighting strengths in resilience and momentum, Rakuten might continue to navigate market challenges and maintain an upward trajectory, albeit with some constraints in other key areas like value, dividends, and growth. Investors may want to consider a balanced view of these factors when evaluating Rakuten‘s long-term investment potential.


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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