Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GEA GROUP AG. We currently have 11 research reports from 1 professional analysts.
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GEA GROUP AG
GEA GROUP AG
Final 9M earnings clearly below our already cautious view
28 Oct 16
Management had given a profit warning on 20 October. At that time, we had believed that the company’s numbers would be about in line with our cautious view. This assumption was too optimistic. Whereas 9M revenue of €3.2bn (-2.0%) was just above our projected €3.17bn, pre-tax (€200m) and net earnings (€157m) were clearly below our €223m and €177m.
Management blames clients for the profit warning
20 Oct 16
Instead of a moderate full-year revenue increase, management now expects sales to fall slightly. Management’s ‘operating EBITDA’ is now projected at €570m (including some €10m from the first-time consolidation of Imaforni) instead of the previously given range of €645-715m (excluding the Imaroni effect). The 2015 number was €621m.
Headline numbers improve in Q2
28 Jul 16
GEA had a very weak Q2 15 and, based on these low numbers, order inflow increased by 6.4% to €1.22bn (+4.0% to €2.37bn in H1) while the respective revenue numbers were +0.5% to €1.16bn and -2.7% to €2.1bn. The book-to-bill ratio of 1.13 for H1 is a very good number compared to previous H1 numbers. At a glance, the profit numbers are superb. H1 EBIT improved from €47m in 2015 to €167m and net earnings from €19m to €117m.
Dismal Q1 revenue and profit numbers
09 May 16
We had expected GEA’s Q1 revenue and profit numbers to be down, but we had not expected profits to collapse. While order inflow was up by 1% to €1.14bn, sales fell by 6.5% to €941m. EBIT was down by 13% to €59m, pre-tax earnings fell by 24% to €42m, and net profit by 15% to €34m. In addition, negative cash from operations (based on management’s definition) increased by 20% to -€85m.
Order inflow growth moderated to +1.5% in Q1 16
20 Apr 16
GEA will release its Q1 accounts on 9 May, but it has given the order inflow number for the last quarter. This amounted to €1.14bn, which is an increase of 1.5%. The change rates were +10% in Q1 15, -2% in Q2, and -9% in Q3 last year. Orders received from milk processors were up, but they fell from farmers for milking equipment and from the oil and gas industries.
Profits clearly lower than our expectations
10 Mar 16
The group’s order inflow and revenue numbers were up by 1.5% and 1.8% to €4.59bn and €4.60bn in 2015, respectively. While EBIT was down by 30% to €309m, pre-tax profit fell by 28% to €270m, whereas net earnings increased by 13% to €362m. The latter benefited from a profit of €98m from discontinued operations (€35m in 2014). While the group had released order inflow and revenue indications in early February, the profit numbers are clearly lower than what we had expected. Our EBIT projection was €350m while the respective pre-tax and net profit numbers were €444m and €388m. The proposed dividend is €0.80, i.e. in line with our projection.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.