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Investing.com -- Intertek Group shares fell more than 4% on Tuesday after the United Kingdom-based testing and inspection company reported third-quarter organic revenue growth that came in slightly below market expectations while keeping its full-year outlook unchanged.
Intertek posted 4.1% organic growth for the July-to-October period, aligning with Morgan Stanley’s estimate of 4.2% but trailing Visible Alpha consensus of 4.5%, which the note said included “several stale estimates.”
The figure compared with 4.5% growth in the first half of 2025 and was weaker than the 6.3% and 6.0% reported by Bureau Veritas and SGS, respectively, for the July-to-September quarter. Reported revenue growth was 2.2% after a foreign-exchange drag of -1.8%.
Morgan Stanley described the update as “a decent print, but growth print and guide below peers; margins remain robust.”
Performance across divisions was mixed. Consumer Products rose 5.4% in the quarter, consistent with full-year guidance for high-single-digit growth. Corporate Assurance grew 6.6%, also in line with its high-single-digit target.
World of Energy was flat, with the note citing softness in transportation technologies “(autos programmes being scaled back).”
Guidance for the division was lowered to “Stable” from low-single-digit growth. Industry & Infrastructure increased 6%, and its full-year outlook was raised to mid-single-digit growth, supported by stronger minerals activity. Health and Safety rose 0.8%, with low-single-digit guidance unchanged.
Intertek reiterated its full-year forecast for mid-single-digit organic revenue growth at constant currency along with margin progression and strong cash flow.
Company-compiled consensus cited in the note showed expected revenue of £3.43 billion, organic growth of 4.6%, EBIT of £611 million producing a 17.8% margin, adjusted pretax profit of £564 million and adjusted earnings per share of 250.5p.
Morgan Stanley said it expects organic growth forecasts to “trim slightly to c. 4.3%,” offset by a higher expected acquisition contribution of about 0.5% compared with the 0.2% reflected in consensus.
The brokerage added that with foreign-exchange assumptions already set at 3% decline for the year, it did not expect changes to headline profit or earnings estimates.