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Investing.com -- Nemetschek (ETR:NEKG) posted a positive pre-release for the second quarter on Thursday, delivering a second consecutive upside surprise as it lifted its full-year revenue outlook on the back of robust growth across key segments.
Second-quarter constant currency growth accelerated to 30.5%, well above the consensus estimate of 26%, according to Morgan Stanely.
Total (EPA:TTEF) revenue reached €290 million, beating consensus by over 3%.
Organic growth, excluding M&A and FX, stood at 16.1%.
EBITDA came in at €88.5 million, with a margin of 30.5%, also topping expectations.
The outperformance was driven by solid execution in the Design and Build segments. Nemetschek noted that Design growth included “very high organic and inorganic growth,” though this was partially tempered by stronger-than-expected demand for multi-year contracts. Build segment growth surged 56.4% year-over-year in constant currency.
Nemetschek now expects full-year revenue growth of 20–22% in constant currency, up from the previous 17–19% range.
The company maintained its EBITDA margin guidance at around 31%.
Morgan Stanley (NYSE:MS) analysts acknowledged the guidance raise implies stronger second-half growth than previously forecast, especially given the anticipated slowing contribution from the GoCanvas acquisition.
“Very crudely, the implied second-half growth at the mid-point of the new guidance could be around 15% versus our estimate around 12%,” analyst George W. Webb said.
Despite the beat and guidance upgrade, Webb views the unchanged margin outlook as somewhat conservative, given the stronger top-line momentum. Still, he believes “beats are expected at these valuation levels” and expects the stock to “trade up low single digit %” following the release.