Shares in ThyssenKrupp AG fell 2.5% Wednesday after the German industrial engineering company issued revenue guidance that fell short of analyst estimates.
For the fiscal Q2 2024, group revenues came in at €168 million, missing the consensus estimate of €190 million. AWE revenues were €95 million, also below the consensus projection of €108 million.
Group EBIT was €-10.6 million, missing the analyst estimates of €-9.0 million.
“As anticipated by management, the decline in EBIT is primarily due to the increase in structural and development costs for the implementation of the AWE growth strategy and a lower gross margin due to a higher AWE share of total sales as well as an increase in other cost of sales due to the AWE ramp-up and capacity expansion,” RBC Capital Markets analysts highlighted in a note.
Overall, sales declined 10% year-over-year, reaching €9.06 billion.
Looking ahead, ThyssenKrupp maintains that the sales and earnings outlook for the Group for the financial year 2023/24, published on December 18, 2023, remains appropriate.
The company now projects sales in the range of €820-900 million, aligning with the previously expected mid double-digit percentage increase compared to last year. However, this is below the consensus estimate of €979 million.
For EBIT, the firm continues to anticipate a negative figure in the mid double-digit million euro range, compared to consensus forecasts of €-40 million.
Following the report, RBC Capital Markets analysts reiterated an Outperform rating on the stock, with a target price of €21.