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Investing.com -- Shares of Netcompany Group (COPENHAGEN:NETC) fell sharply by over 15% following the release of their fourth-quarter earnings, which missed market expectations.
The technology consulting firm reported a shortfall in both revenue and adjusted EBITDA, with revenues missing consensus estimates by 3%% and adjusted EBITDA falling short by 16%.
The company's performance was marked by revenue contractions in Norway and the UK, with all segments except Intrasoft failing to meet consensus revenue expectations.
Despite the revenue downturn, Netcompany's fourth-quarter free cash flow was notably strong, nearly doubling forecasts due to favorable working capital movements.
Investors were further disheartened by the company's fiscal year 2025 guidance, which projected growth of only 5-10%, below the roughly 10% growth anticipated. This subdued outlook also led to the postponement of the company's 2026 revenue target to 2027.
Analysts at Morgan Stanley (NYSE:MS) weighed in on the results, stating, "We expect the stock to underperform and potentially trade below DKK 300 today (given we expect c. 9% FY25 consensus adj. EBITDA revisions and some derating)."
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