French software maker’s Q2 revenue misses forecast by €30 million
- Dassault Systemes cuts revenue guidance due to customer order delays
- Second-quarter revenue expected at €1.495 billion
- Revenue lower by €30 million than expectations
- Full-year revenue growth forecast reduced to 6%-8%
- Diluted EPS guidance remains unchanged at €0.30
Dassault Systemes, the French software maker, has cut its full-year revenue guidance after revealing that second-quarter revenue missed its forecast due to customer caution amid the geopolitical environment. The company now expects second-quarter revenue to be €1.495 billion ($1.62 billion), compared with its previous guidance of €1.525 billion to €1.555 billion. This is €30 million lower than expectations, primarily due to transaction delays. However, the diluted earnings per share (EPS) remains in line with guidance at €0.30, as it had forecast for second-quarter EPS to be between €0.30 and €0.31. The company has revised its full-year revenue growth outlook from 8% to 10% to a more conservative 6% to 8%, while the diluted EPS guidance remains unchanged at 8% to 11%. Chief Executive Pascal Daloz stated that, despite order delays, all deals are still expected to be booked in future quarters. He added that they anticipate continued volatility in customer decision-making and believe it is prudent to reflect this in their full-year outlook. The company will report its second-quarter earnings ended June 30 on July 25.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Dassault Systemes’ revenue guidance adjustment due to customer caution in the geopolitical environment. It includes relevant details about the company’s performance and the CEO’s statement on future expectations.
Noise Level: 7
Noise Justification: The article provides relevant information about Dassault Systemes’ revenue guidance adjustment due to customer caution in the geopolitical environment but lacks a comprehensive analysis of long-term trends or possibilities and does not offer actionable insights for readers.
Public Companies: Dassault Systemes (DSY)
Key People: Pascal Daloz (Chief Executive)
Financial Relevance: Yes
Financial Markets Impacted: Dassault Systemes stock
Financial Rating Justification: The article discusses the impact of geopolitical environment on Dassault Systemes’ revenue and its adjustment to full-year guidance, which can affect the company’s stock price in financial markets.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: The extreme event is a financial crisis due to customer caution caused by the geopolitical environment, leading to a decrease in revenue and adjusted guidance for the year. The impact is rated as moderate because it affects the company’s financial performance but does not cause major disruptions or long-term consequences.
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