Signify: shares rise despite warning
(CercleFinance.com) - Dutch lighting maker Signify has decided to cut its sales outlook for the year given the slow start to the year and ongoing challenging market conditions, the company said on Friday.
The former Philips Lighting said it expects comparable sales growth in the second half to improve compared with the first half, but the improvement is not expected to be sufficient to deliver positive comparable sales growth for the full year.
In the second quarter, net income was 29 million euros, down from 73 million euros in the second quarter of 2017, on sales of 1.5 billion euros, a comparable decrease of 3.4%.
"Second-quarter results are not great but we think there is limited downside to 2018 consensus”, analysts at UBS commented.
"Signs of a US improvement plus a major buyback step-up are positive", they said.
Indeed, Signify plans to increase its share repurchase program from 150 million euros to 300 million euros.
As a result, its shares were up 6% on Euronext Amsterdam.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The former Philips Lighting said it expects comparable sales growth in the second half to improve compared with the first half, but the improvement is not expected to be sufficient to deliver positive comparable sales growth for the full year.
In the second quarter, net income was 29 million euros, down from 73 million euros in the second quarter of 2017, on sales of 1.5 billion euros, a comparable decrease of 3.4%.
"Second-quarter results are not great but we think there is limited downside to 2018 consensus”, analysts at UBS commented.
"Signs of a US improvement plus a major buyback step-up are positive", they said.
Indeed, Signify plans to increase its share repurchase program from 150 million euros to 300 million euros.
As a result, its shares were up 6% on Euronext Amsterdam.
Copyright (c) 2018 CercleFinance.com. All rights reserved.