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.
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.