Macromill Full Year 2024 Earnings: EPS Misses Expectations

Macromill (TSE:3978) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥43.9b (up 8.0% from FY 2023).
• Net income: JP¥2.29b (up 28% from FY 2023).
• Profit margin: 5.2% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue.
• EPS: JP¥60.18 (up from JP¥45.19 in FY 2023).

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

Macromill EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%.

The primary driver behind last 12 months revenue was the Japan Business segment contributing a total revenue of JP¥37.7b (86% of total revenue). Notably, cost of sales worth JP¥38.2b amounted to 87% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling JP¥3.33b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 3978's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Media industry in Japan.

Performance of the Japanese Media industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Be aware that Macromill is showing 3 warning signs in our investment analysis and 1 of those is a bit concerning...

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