Crispr Therapeutics shares tumble after significant earnings miss
Investing.com -- Hensoldt AG stock rose 5.5% after the German defense electronics company reported second-quarter results that exceeded analyst expectations, with particularly strong performance in its Sensors division.
The company posted quarterly revenues 2% above consensus estimates, driven by the Sensors segment. Orders increased 1% year-over-year (YoY), coming in 9% ahead of analyst forecasts. EBITDA surpassed expectations by 13%, with less margin compression than anticipated in the Sensors division, though margins were still down approximately 80 basis points YoY.
Excluding the impact of drop-through revenues, the underlying EBITDA margin in Sensors decreased about 340 basis points YoY during the quarter, attributed to product mix and lower productivity as the company establishes a new logistics center. Meanwhile, the Optronics division saw its German business achieve a solid recovery compared to last year, helping the segment reach breakeven at the EBIT level.
Free cash flow remained negative for the quarter at €(74) million, though the outflow was slightly narrower than analysts had projected, reflecting typical seasonal patterns.
Hensoldt reiterated its full-year 2024 guidance, maintaining targets for sales of €2.5-2.6 billion with an adjusted EBITDA margin of approximately 18%. The company continues to expect a book-to-bill ratio of 1.2x and adjusted free cash flow conversion of 50-60%.
For the second half of 2024, Hensoldt anticipates key orders including approximately €200 million for Eurofighter, €200 million for air defense radars, over €500 million for ground-based systems, more than €100 million for land border surveillance, and around €80 million for maritime patrol.
The company still expects first orders from Germany’s increased defense spending to arrive in 2026, impacting revenue in 2027, following budget approvals expected in late 2024.
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