Teleperformance: sales better than expected, share price surges

(CercleFinance.com) - Teleperformance shares posted the biggest rise in the SBF 120 index on Thursday morning, as investors welcomed the publication of sales that were worse than expected for the first quarter.


At around 10:45 a.m., shares in the customer experience outsourcing specialist were up by more than 10%, while the SBF 120 was down by 0.8%.

On Tuesday evening, before the May 1st public holiday, Teleperformance announced first-quarter sales of 2.54 billion euros, up 26.7% on a reported basis and up a small 0.9% on a pro forma basis.

This is slightly better than the forecasts made by analysts, who were fearing a decline in business over the first three months of the year.

In a reaction note, Oddo BHF analysts hail 'a reassuring first quarter and a more favorable basis of comparison for the rest of the year'.

The Group has indeed confirmed its targets for 2024, with a more dynamic second half expected.

For the year as a whole, it is still targeting pro forma sales growth of between 2% and 4%, accompanied by an increase of between 10 and 20 basis points in its recurring Ebita margin, again on a 'pro forma' basis.

We see this slightly better-than-expected Q1 performance, together with the confirmation of annual targets, as an encouraging first step towards a gradual recovery and accelerated growth", say Stifel's analysts.

"We recognize, however, that it is still too early to draw conclusions at this stage, and look forward to confirmation over the coming quarters", concludes the research firm.

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