Stock Analysis

Japan Post Insurance Full Year 2024 Earnings: Beats Expectations

Simply Wall St

May 22, 2024

Japan Post Insurance (TSE:7181) Full Year 2024 Results

Key Financial Results

Revenue: JP¥2.80t (down 16% from FY 2023).
Net income: JP¥87.1b (down 11% from FY 2023).
Profit margin: 3.1% (up from 2.9% in FY 2023). The increase in margin was driven by lower expenses.
EPS: JP¥227 (down from JP¥249 in FY 2023).

revenue-and-expenses-breakdown — TSE:7181 Revenue and Expenses Breakdown May 22nd 2024

All figures shown in the chart above are for the trailing 12 month (TTM) period

Japan Post Insurance Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 9.2%.

In the last 12 months, the only revenue segment was Life Insurance Business contributing JP¥2.80t. Notably, cost of sales worth JP¥2.08t amounted to 74% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to JP¥440.3b (70% of total expenses). Explore how 7181's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 1.4% growth forecast for the Insurance industry in Japan.

Performance of the Japanese Insurance industry.

The company's shares are down 6.2% from a week ago.

Risk Analysis

Before we wrap up, we've discovered 4 warning signs for Japan Post Insurance (2 are a bit concerning!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.