Signify: significant rise in stock after upbeat forecasts
(CercleFinance.com) - Signify shares are up in Amsterdam on Friday, after the group reported a much more optimistic forecast for FY 2023.
At around 11.10am, the share price of the world's leading lighting company was up 3.9%, the biggest winner in the AEX index.
On the publication of its final Q4 results, the group announced that it expects to generate growth this year - both organically and through targeted acquisitions.
Citing the volatility of the current economic environment, Signify prefers not to disclose specific growth forecasts, but in any case this is better than the consensus forecast of a about a 1.5% decline in business in 2023.
The company added that it intends to focus on improving its adjusted operating margin, which is expected to be between 10.5% and 11.5% this year, while raising its free cash flow, which is expected to be between 6% and 8% of sales at the end of the year.
For UBS, this outlook comes as a "pleasant surprise", as it does not imply any downward revision of market estimates for 2023, which the broker considers an important step towards the "normalisation" of the group's business.
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