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Trend Micro Incorporated (JP:4704)
:4704
Earnings Data
Report Date
May 08, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
78.77Last Year’s EPS
79.31Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 18, 2025
|% Change Since: -5.91%
|Next Earnings Date:May 08, 2025
Earnings Call Sentiment|Neutral
The earnings call reflected a strong performance in enterprise growth and strategic AI investments, contributing to record-breaking pre-GAAP growth and profitability. However, challenges in the consumer business, particularly due to a switch in online payment processing and ongoing issues in Japan's PC market, were notable concerns. The company's focus on cost management and dividend increases were positive, yet the decline in perpetual renewable growth and headcount adjustments highlighted areas needing attention.Company Guidance
In the recent call, the company reported a robust performance for the fourth quarter of fiscal year 2024, with net sales increasing by 8% and pre-GAAP net sales growing by 20% year-on-year. The operating income showed a slight decline compared to the previous quarter but remained strong with pre-GAAP profitability improving to 40% from 27% a year ago. Notably, enterprise ARR saw a 15% growth while perpetual renewables experienced single-digit growth. The company also highlighted a significant headcount reduction from 7,400 in 2023 to 6,869 in 2024, aiming to improve productivity through AI integration rather than cost-cutting measures. It plans to increase headcount and invest in AI to drive future sales growth. The consumer segment faced challenges due to issues with a payment outsourcer, resulting in a JPY 1.7 billion impact on pre-GAAP revenue. However, overall, the company achieved its highest-ever pre-GAAP organic growth without any major acquisitions. For the full year, the company reported a 10% increase in net sales, with operating income reaching JPY 60.3 billion, a 27% year-on-year increase. The fiscal year 2025 outlook anticipates growth across all regions, with EMEA and Asia expected to grow at 10%, and a 6% increase in net sales overall, despite minimal FX impact. The dividend declared is ¥184 per share, reflecting a substantial increase from ¥56 in 2023 when compared on a normalized basis.Record-Breaking Pre-GAAP Organic Growth
The company observed the highest ever pre-GAAP organic growth in Q4, with net sales up by 20% year-on-year. The growth was purely organic with no impact of acquisitions, and the pre-GAAP profitability improved from 27% to 40%.
Enterprise Segment Growth
Enterprise ARR grew by 15%, with the enterprise business up 12% year-over-year, driven by the adoption of the Vision One platform. The large enterprise recurring revenue increased by 8%.
Strategic AI Investments
Significant investments in AI, including the Trend Cybertron specialized cybersecurity LLM model, were highlighted as a key part of the company's strategy to shift towards proactive cybersecurity.
Dividend Increase
The annual earnings dividend was ¥184 per share compared to ¥56 in the previous year, indicating a substantial increase when comparing on a like-for-like basis.
Successful Cost Management
Despite inflation, the total cost growth was limited to 2%, attributed to efficiencies in cloud-related expenses and outsourcing.
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JP:4704 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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JP:4704 Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 18, 2025 | ¥11850.00 | ¥11680.00 | -1.43% |
| Nov 12, 2024 | ¥8058.21 | ¥7721.23 | -4.18% |
| Aug 08, 2024 | ¥6523.73 | ¥6585.26 | +0.94% |
| May 08, 2024 | ¥7858.95 | ¥7781.79 | -0.98% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Trend Micro Incorporated (JP:4704) report earnings?
Trend Micro Incorporated (JP:4704) is schdueled to report earning on May 08, 2025, TBA Not Confirmed.
What is Trend Micro Incorporated (JP:4704) earnings time?
Trend Micro Incorporated (JP:4704) earnings time is at May 08, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Trend Micro Incorporated stock?
The P/E ratio of Trend Micro is N/A.
What is JP:4704 EPS forecast?
JP:4704 EPS forecast for the fiscal quarter 2025 (Q1) is 78.77.
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