ES NETWORKS CO.,LTD., The Current Fiscal Year Ordinary Profit Revised Downward by 8%, The Undetermined Dividend to Rise by 4 yen

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Fri Nov 8, 2024 3:00 pm JST Earnings

5867 ES NETWORKS CO.,LTD. 【J-GAAP】

Earnings Report

ES NETWORKS CO.,LTD. <5867> [TSE-G] announced its financial results in the afternoon session on November 8th (15:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) decreased by 8.3% from the same period last year to 210 million yen.

In addition, the full-year consolidated ordinary profit has downwardly by 7.8%, from the previous forecast of 321 million yen to 296 million yen (compared to 251 million yen in the previous period), leading to a reduction in the profit growth rate from 27.9% to 17.9%. However, the full-year consolidated net income has been revised upward by 34.6%, from the previous forecast of 208 million yen to 280 million yen (compared to 136 million yen in the previous period), increasing the growth rate from 52.9% to 2.1 times, reaches new record high for the first time in six terms.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has downwardly by 18.1%, from the previous forecast of 138 million yen to 113 million yen (compared to 110 million yen in the same period of the previous year), leading to a reduction in the profit growth rate from 25.5% to 2.7%.

At the same time, the company has decided to implement a year-end lump-sum dividend of 45 yen for the current fiscal year, which was previously undecided (compared to 41 yen in the prior term).

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit significantly dropped to 27 million yen, a 69.3% decrease compared to the same period last year. The operating profit margin sharply declined from 11.7% in the same period last year to 4.9%.

Kabutan News

Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Sep, 2024	2,197	215	210	176	58.6	70.9	Nov 8, 2024	J-GAAP
YoY	－	－	－	－	－

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Prev	1,358	153	138	82	27.3	－	Aug 9, 2024	J-GAAP
Jul - Dec, 2024 New	1,415	120	113	154	51.4	45	Nov 8, 2024	J-GAAP
Revision Rate	+4.2%	-21.6%	-18.1%	+87.8%	+87.8%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	2,883	335	321	208	69.4	－	Feb 9, 2024	J-GAAP
Dec, 2024 New	2,940	302	296	280	93.4	45	Nov 8, 2024	J-GAAP
Revision Rate	+2.0%	-9.9%	-7.8%	+34.6%	+34.6%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2023	1,347	124	110	24	8.2	41	Feb 9, 2024	J-GAAP
Jul - Dec, 2024 Guidance	1,415	120	113	154	51.4	45	Nov 8, 2024	J-GAAP
YoY	+5.0%	-3.2%	+2.7%	+541.7%	+527.0%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2023	2,711	269	251	136	46.4	41	Feb 9, 2024	J-GAAP
Dec, 2024 Guidance	2,940	302	296	280	93.4	45	Nov 8, 2024	J-GAAP
YoY	+8.4%	+12.3%	+17.9%	+105.9%	+101.1%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	665	44	22	-2	-0.7	6.6	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	739	98	98	69	23.1	13.3	May 10, 2024	J-GAAP
Apr - Jun, 2024	786	84	85	57	19.1	10.7	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	672	33	27	50	16.7	4.9	Nov 8, 2024	J-GAAP
YoY	－	－	－	－	－