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Investing.com -- Shares of A2A (BIT:A2A) declined by 2% today after the company’s earnings report showed a marginal increase in ordinary EBITDA, which was in line with Bloomberg consensus.
The Italian utility company reported an ordinary EBITDA of €2.32 billion, marking a 2% rise compared to the consensus estimates. However, investors seemed unimpressed as the stock moved lower in the trading session.
The slight uptick in EBITDA was accompanied by a 4% increase in net debt, attributed to slightly higher capital expenditures than the consensus had anticipated. Despite the debt increase, the company maintained a net debt to EBITDA ratio close to the guided and consensus figure of approximately 2.5 times.
A notable highlight from the report was the strength in hydroelectric production, which surged 39% year-on-year (YoY) to 5.2 terawatt-hours (TWh), outperforming the long-term normalized volumes of around 4 to 4.2 TWh. Although this increase in hydro volume was significant, it had been well communicated throughout the year and did not come as a surprise to the market.
Morgan Stanley (NYSE:MS) commented on the results, stating, "We expect no meaningful incremental share price move in A2A shares post solid but broadly in line preliminary 2024 result."
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