Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Goldman Sachs downgraded shares of IMI Plc. (LON:IMI:LN) (OTC:IMIAY) from Buy to Neutral and reduced the price target from GBP22.20 to GBP21.20. The revision by Goldman Sachs analyst Christian Hinderaker was based on several factors including the recent downturn in US ISM manufacturing PMIs, updates to capital expenditure trackers, IMI’s first-quarter 2025 trading update, and increased foreign exchange headwinds.
The firm adjusted its full-year 2025 earnings per share (EPS) estimate for IMI downward from 133.1p to 129.8p, aligning with the lower end of the company’s guidance range of 129p-136p. This adjustment reflects a decrease in the organic sales growth (OSG) forecasts for IMI’s Automation and Life Technology segments, as well as changes in foreign exchange impact and a smaller contribution from mergers and acquisitions (M&A) than previously anticipated.
Despite these revisions, Goldman Sachs maintained its 20.1% group adjusted EBIT margin forecast for IMI. However, they anticipate a shift in the business mix towards the Automation segment, expecting Process Automation and aftermarket revenues to represent a larger portion of the FY25 expected mix. The combined effect of these changes has led to a decrease in the forecasts for IMI’s sales, adjusted EBIT, and adjusted net income by approximately 5%, 5%, and 6% respectively for FY25.
The impact of the lowered forecasts extends to IMI’s free cash flow (FCF) predictions for FY25 and FY26, which have been reduced by about 9% and 8%. This is partly due to the lowered earnings and a roughly £10 million increase in the company’s expected capital expenditures for FY25, following guidance provided in IMI’s first quarter update.
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