Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com -- Kingspan shares surged more than 13% on Friday after the company reported better-than-expected earnings.
The Irish building materials group posted a trading profit of €907 million for 2024, surpassing consensus estimates by approximately 3%.
The strong performance came as a welcome surprise after previous guidance had been revised down to around €877 million in November.
Analysts at Jefferies noted that Kingspan’s results reflected improved momentum towards the end of the year.
While the company provided limited numerical guidance for 2025, management’s commentary suggested growing confidence in the year ahead.
The brokerage flagged robust order backlogs and continued demand for energy-efficient building solutions, which it expects to drive mid-single-digit organic growth this year.
The earnings report also pointed to key factors investors will be watching, including cost and pricing trends, Kingspan’s mergers and acquisitions strategy, and potential upside from increasing demand in the data center and artificial intelligence sectors.
The company has been expanding its portfolio through acquisitions, helping to counterbalance more subdued organic growth in some segments.
Jefferies maintained a “hold” rating on the stock, with a price target of €70.90, reflecting a more measured stance on the company’s long-term valuation despite the short-term gains.
The analysts acknowledged the positive earnings surprise but cautioned that broader macroeconomic conditions and potential cost pressures remain factors to monitor in the coming months.