Worldline: share price sliced in two after profit warning
(CercleFinance.com) - The Worldline share has collapsed 50% after announcing Q3 sales figures and making a profit warning for 2023, announcing targets that it has slashed.
Worldline says it has indeed reduced its targets, reflecting market conditions, with it now expecting organic sales growth of 6% to 7% and an EBITDA margin that is down around 150 bp.
Q3 sales reached E1,182m (+2.0%; +4.8% LFL) vs. E1,212m and +7.5% LFL expected by the consensus (IS E1,209m and +7.4% LFL), giving 9-month sales of E3,424m (+7.7%; +7.9% LFL), Invest Securities points out.
In its targets, the group is now aiming for growth of +6% to +7%, vs. +8% to +10% and +8.6% expected (Invest Securities +8.7%), stable EBITDA in value terms, i.e. E1,109m vs. E1,255m expected, i.e. a -150bp drop in its EBITDA margin vs. >+100bp and +104bp expected, and conversion of EBITDA into FCF of 30% to 35% versus 46% to 48% and 46.5% expected (Invest Securities expected 45%)".
Oddo BHF says that the stock is trading at 6.3x 12-month EBITDA, which is very cheap, but which also reflects a more challenging environment.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
Worldline says it has indeed reduced its targets, reflecting market conditions, with it now expecting organic sales growth of 6% to 7% and an EBITDA margin that is down around 150 bp.
Q3 sales reached E1,182m (+2.0%; +4.8% LFL) vs. E1,212m and +7.5% LFL expected by the consensus (IS E1,209m and +7.4% LFL), giving 9-month sales of E3,424m (+7.7%; +7.9% LFL), Invest Securities points out.
In its targets, the group is now aiming for growth of +6% to +7%, vs. +8% to +10% and +8.6% expected (Invest Securities +8.7%), stable EBITDA in value terms, i.e. E1,109m vs. E1,255m expected, i.e. a -150bp drop in its EBITDA margin vs. >+100bp and +104bp expected, and conversion of EBITDA into FCF of 30% to 35% versus 46% to 48% and 46.5% expected (Invest Securities expected 45%)".
Oddo BHF says that the stock is trading at 6.3x 12-month EBITDA, which is very cheap, but which also reflects a more challenging environment.
Copyright (c) 2023 CercleFinance.com. All rights reserved.