Seven & i Holdings, the parent company of 7-Eleven, is set to announce its first-quarter results on Thursday. Let’s take a closer look at what we can expect:
Net Profit Forecast
Analysts surveyed by FactSet anticipate a 6.1% decline in net profit for the quarter ended May 31. The projected net profit is expected to be 61.08 billion yen ($434.7 million).
Revenue Forecast
According to the same FactSet poll, first-quarter revenue is estimated to have increased by 2.5% compared to the previous year. The estimated revenue for the quarter stands at Y2.510 trillion.
Key Points to Watch
There are several key factors investors should keep an eye on during the upcoming earnings announcement:
Guidance
Back in April, Seven & i Holdings forecasted a 5.6% revenue decline for the fiscal year, totaling Y11.154 trillion. Additionally, they projected a 1.4% increase in net profit, reaching Y285.00 billion. It will be interesting to see if there are any adjustments or updates to these projections.
Margin Analysis
The company’s operating profit margin slightly declined to 4.3% in the previous fiscal year from 4.4% in the year before. Given the current global landscape characterized by high inflation, investors are closely monitoring margin trends.
Restructuring Initiatives
As part of their strategic focus on their convenience-store business, Seven & i Holdings has expressed interest in exploring options like potential initial public offerings and business spinoffs. Any updates regarding restructuring plans from the management are likely to attract attention from investors.
We will eagerly await the announcement of Seven & i Holdings’ first-quarter results.
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