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Investing.com -- Valmet shares dropped 4% on Wednesday after the company reported mixed third-quarter results with its Biomaterials division missing analyst expectations despite overall stable performance.
The company’s orders and sales were broadly in line with forecasts, while comparable EBITA (earnings before interest, taxes, and amortization) showed mixed performance across divisions. The Process division exceeded expectations, while the Biomaterials segment fell short.
In the Biomaterials division, service orders came in 4% below consensus estimates, while equipment orders were 1% below forecasts. The division’s comparable EBITA missed expectations by 7%, with margins at 9.5%, which was 80 basis points below analyst projections.
The Process Performance Solutions division, which includes automation and Neles businesses, performed better with orders 5% above consensus. This division’s comparable EBITA exceeded expectations by 16%, with margins reaching 21.9%, which was 330 basis points higher than anticipated.
Valmet maintained its full-year guidance, projecting stable sales and comparable EBITA. Market analysts currently expect a 2% decrease in sales and a 1% increase in comparable EBITA.
The company noted potential risks of further softening in service activity and mentioned ongoing uncertainty surrounding capital equipment decisions, while expecting automation markets to remain stable.
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