Earnings Alerts

Seven & I Holdings (3382) Earnings Miss Estimate: FY Operating Income Falls Short Despite Strong Q4 Performance

  • Seven & I forecasts operating income for the fiscal year at 424.00 billion yen, below the estimated 459.63 billion yen.
  • Net income is expected to reach 255.00 billion yen, surpassing the estimate of 252.93 billion yen.
  • The company anticipates net sales of 10.76 trillion yen, falling short of the estimated 11.61 trillion yen.
  • Dividend per share is projected to be 50.00 yen, higher than the estimated 42.99 yen.
  • For the fourth quarter, operating income was reported at 238.07 billion yen, which is significantly above the estimate of 94.72 billion yen.
  • Fourth quarter net income reached 109.44 billion yen, rising sharply from the previous year’s 42.46 billion yen, and exceeding the estimate of 108.18 billion yen.
  • Fourth quarter net sales reported were 11.83 trillion yen, more than doubling the previous year and far exceeding the estimate of 2.82 trillion yen.
  • Dividend for the fourth quarter was 20.00 yen, down from the previous year’s 56.50 yen.
  • Full-year operating income amounted to 420.99 billion yen, representing a 21% decrease year-over-year, and higher than the estimated 411.67 billion yen.
  • Japan convenience store segment’s operating income declined by 6.8% to 233.55 billion yen, close to the estimated 234.3 billion yen.
  • Overseas convenience store segment saw a significant 28% drop in operating income to 216.25 billion yen, but still above the estimate of 206.24 billion yen.
  • Operating income for the superstore segment decreased by 23% to 10.42 billion yen.
  • The financial services segment’s operating income fell by 16% to 32.02 billion yen, slightly below the estimate of 32.87 billion yen.
  • The investment community holds mixed views, with 5 buys and 10 holds, but no sell recommendations.

Seven & I Holdings on Smartkarma

Analyst coverage of Seven & I Holdings on Smartkarma has shown mixed sentiments among independent analysts. Arun George provides insight on merger arb situations, with Seven & I Holdings having one of the highest spreads. In a different report, David Blennerhassett takes a bullish stance on Seven & I, emphasizing potential in the company’s standalone plan. On the contrary, Arun George‘s bearish analysis highlights concerns about the company’s engagement with Alimentation Couche-Tard. Travis Lundy‘s bullish perspective acknowledges progress but notes discrepancies in communications with ATD.

These reports offer a diverse view of Seven & I Holdings, reflecting varying opinions on the company’s prospects and strategic decisions. Investors following Smartkarma can benefit from the detailed insights provided by analysts like Arun George, David Blennerhassett, and Travis Lundy to make informed investment decisions regarding Seven & I Holdings.


A look at Seven & I Holdings Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth2
Resilience2
Momentum2
OVERALL SMART SCORE2.4

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

Seven & i Holdings Co., Ltd. is a well-established holding company in the retail industry, formed through the merger of several renowned companies. The company primarily focuses on managing and operating convenience stores, supermarkets, and department stores. When looking at the long-term outlook for Seven & i Holdings, the Smartkarma Smart Scores indicate a moderately favorable overall perspective. The company scores moderately well in Value and Dividend factors, indicating a decent position in terms of value and potential returns for investors. However, the scores for Growth, Resilience, and Momentum are a bit lower, suggesting that there may be challenges in terms of future growth and adaptability to market changes.

While Seven & i Holdings holds a solid foundation as a leading retail conglomerate, the Smartkarma Smart Scores highlight areas where the company may need to focus on improvements for sustained success in the long run. With a balanced performance in Value and Dividend factors, the company demonstrates stability and potential for steady returns. However, the lower scores in Growth, Resilience, and Momentum indicate areas where strategic enhancements might be needed to drive future expansion and enhance competitiveness in the dynamic retail landscape. Overall, Seven & i Holdings’ long-term outlook, as indicated by the Smart Scores, suggests a mix of strengths and areas for development that the company may need to address to ensure continued growth and profitability.


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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars