Osram: shares fall for second day after warning
(CercleFinance.com) - The Osram share is down for a second consecutive day on Friday, with the German lighting group having reduced its forecasts for fiscal year 2019.
Citing the continued market weakness in the automotive industry, particularly in China, the company now expects to see its revenue fall by 11%-to-14% in fiscal 2019.
It previously expected revenue to be flat or even rise by up to 3%.
The company also said it expects an adjusted EBITDA margin of 8%-10% this year, compared to a previous guidance of 12%-14%.
However, the extent of this warning seemed to surprise analysts.
"Osram's profit warning is not unexpected but the guidance implies 30-45% consensus earnings downgrades which goes well beyond our expectation of double-digit," UBS noted this morning.
As a result, the Osram shares were down 1.5% on Friday, after falling 13% yesterday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Citing the continued market weakness in the automotive industry, particularly in China, the company now expects to see its revenue fall by 11%-to-14% in fiscal 2019.
It previously expected revenue to be flat or even rise by up to 3%.
The company also said it expects an adjusted EBITDA margin of 8%-10% this year, compared to a previous guidance of 12%-14%.
However, the extent of this warning seemed to surprise analysts.
"Osram's profit warning is not unexpected but the guidance implies 30-45% consensus earnings downgrades which goes well beyond our expectation of double-digit," UBS noted this morning.
As a result, the Osram shares were down 1.5% on Friday, after falling 13% yesterday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.