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Investing.com -- Shares in Datwyler (SIX:DAE) soared more than 13% Tuesday after the Swiss maker of engineering and electronic components delivered first-half (H1) profitability that beat market expectations and in-line revenue.
Group sales came in at CHF563 million, marginally above both consensus estimates, with an organic year-over-year growth of 1.3%.
The company’s group EBIT in H1 stood at CHF69 million, ahead of the CHF63 million consensus. This implies an EBIT margin of 12.2%, also ahead of the 11.2% expected by analysts.
Net income (NI) reached CHF38 million, outperforming the CHF35 million consensus projection.
The Healthcare Solutions segment was a standout, with CHF237 million in sales and 5.8% organic growth, as destocking pressures appear to have eased.
Segment EBIT came in at CHF40 million with a 16.9% margin. Industrial Solutions saw softer conditions, posting a 1.4% organic sales decline and an EBIT margin of 8.7%.
UBS noted that Datwyler did not provide a formal outlook for the fiscal 2025 (FY25), having previously guided for continued growth in revenue and profitability.
Despite this, UBS analysts see “medium-single-digit upside risk” to the current FY25 consensus EPS.
Consensus estimates compiled by LSEG project FY25 sales of CHF1.16 billion, reflecting 4.1% organic growth, and an adjusted EBIT margin of 11.8%.
“We expect a positive reaction in light of the destocking at its healthcare-focused segment coming to an end and the beat of EBIT/NI expectations,” analyst Sebastian Vogel said in a note.
However, the lack of formal guidance could limit gains, he added.
UBS maintains its Neutral rating on the stock with a 12-month price target of CHF125.