SMS, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 17% Decrease, The Undetermined Dividend Raised by 8.5 yen

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.

Fri Jan 31, 2025 3:30 pm JST Earnings

2175 SMS Co., Ltd. 【J-GAAP】

Earnings Report

SMS Co., Ltd. <2175> [TSE Prime] announced its financial results after the market closed on January 31st (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) decreased 17.0% from the same period last year to 5.12 billion yen.

In addition, the full-year consolidated ordinary profit has decreased 25.0%, from the previous forecast of 11 billion yen to 8.25 billion yen (compared to 9.9 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 16.7% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the October to March period (2H) has decreased 45.3%, from the previous forecast of 6.07 billion yen to 3.32 billion yen (compared to 4.12 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 19.4% decrease in profit.

At the same time, the company has decided to implement a year-end lump-sum dividend of 28.5 yen for the current fiscal year, which was previously undecided (compared to 20 yen in the prior term).

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit significantly dropped to 0.19 billion yen, a 50.8% decrease compared to the same period last year. The operating profit margin worsened from 2.1% in the same period last year to 0.1%.

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
Apr - Dec, 2022	33,432	5,043	6,398	4,562	52.4	73.0	Jan 31, 2023	J-GAAP
Apr - Dec, 2023	39,357	4,945	6,171	4,376	50.2	62.3	Jan 31, 2024	J-GAAP
Apr - Dec, 2024	44,885	3,592	5,121	3,846	45.0	62.1	Jan 31, 2025	J-GAAP
YoY	+14.0%	-27.4%	-17.0%	-12.1%	-10.2%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	33,823	5,522	6,076	4,348	51.2	－	Oct 29, 2024	J-GAAP
Oct - Mar, 2024 New	29,208	2,726	3,324	2,380	28.0	28.50	Jan 31, 2025	J-GAAP
Revision Rate	-13.6%	-50.6%	-45.3%	-45.3%	-45.3%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	65,665	9,096	11,002	8,018	94.4	－	Apr 26, 2024	J-GAAP
Mar, 2025 New	61,050	6,300	8,250	6,050	71.2	28.50	Jan 31, 2025	J-GAAP
Revision Rate	-7.0%	-30.7%	-25.0%	-24.5%	-24.5%

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	29,208	2,726	3,324	2,380	28.0	28.50	Jan 31, 2025	J-GAAP
YoY	+10.2%	-23.6%	-19.4%	-22.0%	-20.0%

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	61,050	6,300	8,250	6,050	71.2	28.50	Jan 31, 2025	J-GAAP
YoY	+13.1%	-23.8%	-16.7%	-16.3%	-14.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
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
Oct - Dec, 2024	13,043	18	195	176	2.1	0.1	Jan 31, 2025	J-GAAP
YoY	+9.8%	-92.6%	-50.8%	-12.0%	-10.0%