Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GEA GROUP AG. We currently have 12 research reports from 1 professional analysts.
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GEA GROUP AG
GEA GROUP AG
Poor earnings but share buy-back announced
07 Feb 17
GEA released preliminary 2016 order inflow and revenue numbers and ‘adjusted’ EBITDA and EBIT numbers. Final accounts are due out on 10 March. Order inflow was down by 1.7% to €1.22bn in Q4 but up by 1.8% to €4.67bn in the full year. The respective revenue numbers were -3.2% to €1.29bn and -2.3% to €4.49bn. Management’s ‘operating’ EBITDA and EBIT numbers also fell faster in the last quarter than before. EBITDA was down by 11% to €215m in Q4 and by 9% to €566m in the full year. The respective EBIT numbers were -11% to €194m and -10% to €485m.
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.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)