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Investing.com -- Andritz (VIE:ANDR) shares dropped more than 4% on Thursday after the Austrian industrial equipment supplier cut its full-year earnings guidance, offsetting a stronger-than-expected second-quarter order intake.
Order intake rose to €2.39 billion in the quarter ended June, beating consensus estimates by 15%.
The beat was driven by strong performance in the hydro and metals segments, while the pulp business was slightly better than expected. The environment and energy division missed estimates.
Despite the strong order flow, group sales fell 4% short of forecasts at €1.89 billion. Adjusted EBITA came in at €159 million, 2% below consensus. The adjusted EBITA margin was 8.4%, slightly above the 8.3% consensus.
Andritz revised its 2025 outlook to the low end of its previous range, citing foreign exchange impacts.
The company now expects sales of €8-8.3 billion and a comparable EBITA margin of 8.6-9%, implying an adjusted EBITA between €688 million and €747 million.
The midpoint of €718 million is slightly below the consensus estimate of €721 million.
Diluted earnings per share for 2025 are projected at €5.07, compared with a UBS estimate of €5.19.
Net earnings are forecast at €527 million for the year. Historical figures show revenues rose from €7.54 billion in 2022 to €8.66 billion in 2023, before easing to €8.31 billion in 2024.
EBIT declined to €713 million in 2024 from €742 million the previous year. Net earnings also slipped from €567 million in 2023 to €548 million in 2024. The company expects net earnings to decline further in 2025.
Andritz continues to forecast revenue growth in the medium term, with projections rising to €9.17 billion in 2026 and €10.54 billion by 2029.
EBIT is expected to reach €1.06 billion by 2029, while the EBIT margin is seen improving from 8.5% in 2025 to 10.1% in 2029.
The group had €641 million in net cash at the end of 2024, which is projected to decline to €513 million by year-end 2025. Dividend per share is expected to rise to €2.70 this year, up from €2.60 in 2024.