SMS Co., Ltd., First Half Ordinary Profit Decreases by 15%, July-September Ordinary Profit Decreases by 30%

About Information Provided on This Site

The information provided on our website 'Kabutan.com' is not intended to constitute investment solicitation or investment advisory services.
All investment decisions should be made at your own discretion and judgment.
The data on our website is provided by Tokyo Stock Exchange, Osaka Exchange, Nagoya Securities Exchange, JPX Market Innovation & Research, Japannext, and other sources.
Copyright of the Nikkei Stock Average belongs to Nikkei Inc. Stock price charts displayed on Kabutan.com are provided solely for the purpose of reviewing historical price movements of the securities.
These charts neither suggest nor guarantee future price movements of the securities and do not constitute recommendations to buy or sell.
In our financial results coverage, the term 'Surprise Results' identifies securities that demonstrate a significant degree of surprise in their earnings announcements.
This significance is quantitatively assessed based on multiple factors, including: the nature of the announcement (full-year or quarterly results); types of revisions (earnings or dividend forecasts); and numerical analysis comparing the announced results with both the company's previous forecasts and historical performance.
The 'Surprise Ranking' presents these results in order of their calculated surprise factor. Please note that neither these results nor rankings are intended to suggest or guarantee future performance of the listed securities, nor should they be construed as recommendations to buy or sell.

Tue Oct 29, 2024 3:00 pm JST Earnings

2175 SMS Co., Ltd. 【J-GAAP】

Earnings Report

SMS Co., Ltd. <2175> [TSE-P] announced its financial results after the market closed on October 29th (15:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) decreased by 14.7% from the same period last year to 4.92 billion yen. The progress rate against the 11 billion yen full-year plan was 44.8%, also falling below the five-year average of 58.4%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to expand by 47.3% from the same period last year, reaching 6.07 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit dropped to 812 million yen, a 30.4% decrease compared to the same period last year. The operating profit margin drastically worsened from 7.9% in the same period last year to 4.0%.

Kabutan News

Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	23,334	4,609	5,758	4,129	47.4	65.7	Oct 28, 2022	J-GAAP
Apr - Sep, 2023	27,474	4,701	5,775	4,176	47.8	58.3	Oct 27, 2023	J-GAAP
Apr - Sep, 2024	31,842	3,574	4,926	3,670	42.8	44.8	Oct 29, 2024	J-GAAP
YoY	+15.9%	-24.0%	-14.7%	-12.1%	-10.4%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	ー	ー	ー	ー	－	0	Apr 26, 2024	J-GAAP
Apr - Sep, 2024 Results	31,842	3,574	4,926	3,670	42.8	0	Oct 29, 2024	J-GAAP
Revision Rate	－	－	－	－	－

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	26,499	3,568	4,126	3,051	35.0	20	Apr 26, 2024	J-GAAP
Oct - Mar, 2024 Guidance	33,823	5,522	6,076	4,348	51.2	－	Oct 29, 2024	J-GAAP
YoY	+27.6%	+54.8%	+47.3%	+42.5%	+46.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	45,667	7,279	8,759	6,406	73.5	15	Apr 28, 2023	J-GAAP
Mar, 2024	53,973	8,269	9,901	7,227	83.0	20	Apr 26, 2024	J-GAAP
Mar, 2025 Guidance	65,665	9,096	11,002	8,018	94.4	－	Apr 26, 2024	J-GAAP
YoY	+21.7%	+10.0%	+11.1%	+10.9%	+13.7%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	12,280	972	1,166	787	9.0	7.9	Oct 27, 2023	J-GAAP
Oct - Dec, 2023	11,883	244	396	200	2.3	2.1	Jan 31, 2024	J-GAAP
Jan - Mar, 2024	14,616	3,324	3,730	2,851	32.7	22.7	Apr 26, 2024	J-GAAP
Apr - Jun, 2024	17,426	3,000	4,114	3,163	36.7	17.2	Jul 26, 2024	J-GAAP
Jul - Sep, 2024	14,416	574	812	507	5.9	4.0	Oct 29, 2024	J-GAAP
YoY	+17.4%	-40.9%	-30.4%	-35.6%	-34.3%