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Investing.com -- Shares of Lagardere (EPA:MMB) soared 9% as the company reported its FY24 earnings, which beat expectations at the recurring EBIT level.
The French multinational's revenues grew by 10.7% to €8,942 million, slightly ahead of Barclays (LON:BARC)' projections, while recurring EBIT increased by 14.0% to €593 million. Despite these strong figures, headline net income saw a marginal rise of 0.4% to €253 million.
Barclays analysts have responded positively to Lagardere's performance, leading to an upgrade in forecasts. The analyst firm commented, "FY24 results were ahead at recurring EBIT level and 2025 seems to be off to a good start, leading us to upgrade our forecasts. Based on peer multiples, Lagardère is undervalued."
The company's stock movement was also influenced by its shareholder structure, with a limited free float of 6.78%. Notable shareholders include Louis Hachette Group with a 66.53% stake and Qatar Investment Authority holding 11.52%.
Additionally, Chairman and CEO Arnaud Lagardère has reduced his direct holding in the company to 0.40%, shifting his investment to an 8.61% stake in Louis Hachette Group, citing a strong belief in the future of Lagardere through this entity.
Lagardere did not provide specific guidance for 2025 but expressed confidence in its ability to consolidate leading market positions and balance capital allocation between business development, dividends, and debt leverage improvement.
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