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Investing.com -- Bechtle AG (ETR:BC8G) saw its shares pop 12% on Friday after the German IT services and solutions provider’s second-quarter report pointed to signs of recovery thanks to positive developments in Germany’s public sector.
The company’s net profit attributable to shareholders fell 20.2% year-on-year to €47.66 million, with earnings per share (EPS) down to €0.38 from €0.48.
Earnings before taxes declined 20.3% to €66.78 million, though the drop was notably smaller compared to the first quarter.
EBIT decreased 19.3% to €68.37 million, and the EBIT margin narrowed to 4.6% from 5.7% a year earlier.
However, quarterly revenue edged up 0.8% to €1.49 billion from €1.47 billion in the prior-year period, while business volume grew 5.1% to €1.93 billion, driven by a 9.1% increase internationally.
"Bechtle AG saw shoots of recovery in its second quarter 2025," the company said in the release.
For 2025, Bechtle continues to forecast earnings within a range of 5% lower to 5% higher than last year, with business volume expected to post modest growth.
Revenue, however, is projected to rise at a slower pace due to the strong expansion of the software segment.
"A much more upbeat tone from Bechtle today, especially when compared to Cancom’s profit warning last week," Jefferies analyst Martin Comtesse said in a note.
"With 5% growth in business volume and sequentially improved margins (+70bps QoQ) we view Bechtle at an inflection point in anticipation of a more broad-based German recovery," he added.