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Investing.com -- Burkhalter Holding AG stock dropped 10% after the Swiss electrical engineering company reported first-half results that missed analyst profit expectations despite modest sales growth.
The company posted sales of CHF587 million, up 3.4% compared to the same period last year, slightly ahead of analyst expectations of CHF583 million. However, earnings before interest and taxes (EBIT) came in at CHF29.5 million, up 4.6% year-over-year but below the consensus estimate of CHF31.2 million.
Burkhalter's EBIT margin remained flat at 5.0%, falling short of analyst expectations of 5.3%. The company's free cash flow declined approximately 19% to around CHF15 million, primarily due to working capital effects.
Organic growth is estimated to have contributed between 2.4% and 2.9% to the sales increase, with the remainder coming from acquisitions. The company completed two acquisitions year-to-date, though only one contributed to first-half results, representing a combined sales run rate of approximately CHF2.5 million.
Earnings per share increased 3.2% to CHF2.26 compared to the same period last year.
Burkhalter confirmed its guidance for moderate earnings per share growth for fiscal year 2025, though it did not provide specific figures. UBS analysts noted: "We expect a slightly negative reaction, given the c5% miss on EBIT and the low to mid single digit downside risk to FY25E consensus earnings estimates."
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