Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PRYSMIAN SPA. We currently have 6 research reports from 1 professional analysts.
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Margin expansion driven by Telecoms and the Energy project
10 Nov 16
Prysmian reported 9M16 revenue of €5,660m with Q3 16 organic growth in line with H1 16 at +1.8% yoy. Like for Nexans, activity was marked by continued negative pressure on O&G with a 31.6% yoy organic decrease in the first 9M16 (and -20% in Q3 16) offset by strong Energy project sales (+20.9% in 9M16 and +16% in Q3 16) and, in particular, sales of submarine cables and systems. Telecom was also strong with +8.4% organic growth (of which +9.7% in Q3). Adjusted EBITDA climbed to €527m in 9M16, with the margin at 9.3% (8.5% at 30/09/2015). For the Q3 16 alone, the adjusted EBITDA margin reached 9.6%. FY16 guidance confirmed, with the target now at the upper end of the adjusted EBITDA range of €670-720m.
Solid H1 margins but disappointing free cash flow generation
29 Jul 16
Prysmian reported H1 16 results. Main facts: H1 16 revenue reached €3,785m, corresponding to a 1.8% organic change (but only 1.5% in Q2 16 alone) supported by Energy projects (+22.7%) and Telecoms (+5.8%). Adjusted EBITDA reached €347m, corresponding to a 9.2% margin (versus 8.4% in H1 15), slightly above expectations. The net profit increased by 59% to €124m (versus €78m). FCF excluding acquisitions was disappointing at €-176m versus €-97m last year due to WC variation. Prysmian confirmed guidance of adjusted EBITDA for FY16 in the range of €670-720m.
Q1 16 growth driven by Energy projects and telecoms
12 May 16
Prysmian reported its Q1 16 figures. Main facts: Revenue reached €1,810m in Q1 16, corresponding to a +2.3% organic increase including a strong contribution from Energy Projects (+26.4%) thanks to a positive performance by submarine cables and systems and strong high voltage underground sales. The telecoms business was up +3.3%, while the O&G segment was off 33.9% yoy. Adj. EBITDA at €150m corresponding to an 8.3% margin, sharply up from €120m (6.8% of sales) in Q1 15. The operating profit was €76m (versus €83m in Q1 15) due to the fair value change in metal derivatives, the fair value of stock options serving long-term incentive plans and impairment losses recognised against the assets of the new Oil & Gas segment. As a consequence, the net profit was also down from €42m last year to €40m in Q1 16. The net financial position was mostly unchanged at €1,038m (vs €1,040m at the end of 03/15). Adj. EBITDA guidance for 2016 is between €670m and €720m (AlphaValue’s current estimate is €684m) and in line with market expectations. All in all, a positive start to the year driven by Energy projects.
Progressive recovery is taking shape
25 Feb 16
Prysmian reported FY15 results perfectly in line with expectations, including an improved balance sheet situation. Revenue at €7,361m, corresponding to +5.3% organic growth, +5.9% excluding WL impact (+3.2% in Q4 15) thanks to sound execution in Energy projects (+18.2% organic growth ex. WL) and Telecoms (+9.9% organic growth yoy). The company reported adjusted EBITDA at €623m, above the mid-point of the guidance range (€590-640m), while net profit came in at €214m (+86% yoy) and net debt at €750m (vs €802m last year), without acquisitions the net financial debt would have been €529m. As usual, the company will provide an EBITDA guidance at the end of Q1 16, but stated that FX will have a negative impact, as well as Oil&Gas and Mining segments. Prysmian expects that demand in the cyclical businesses of medium voltage cables for utilities and building wires will record a slight volume recovery, an improving trend with growth in the Submarine business, while the Telecom business is expected to see continued growth in demand for optical fibre cables in 2016, albeit at a slower pace than in 2015.
EBITDA guidance lowered amid FX and cyclical weakness
06 Nov 15
Reasonable Q3 15 figures but the FY15 EBITDA guidance is slightly lowered. Prysmian posted 9M15 sales of €5,663m, corresponding to +6.9% organic growth with an adj. EBITDA of €473m (€488m ex WL) corresponding to an 8.5% margin. Prysmian reported strong growth in Energy projects (+19.6% yoy organically ex. WL for 9M15) and the award of the first submarine project in China. There was also a solid trend in Telecoms (+10.3% yoy for the 9M15) while the industrial segment stabilised. For Q3 15 alone, organic growth was +6.6% with €1,926m of revenue, while EBITDA was 8.2%. Energy projects grew 23.9% in Q3 15, accelerating again (+17.4% in H1 15), while Telecoms growth declined to 5.1% yoy (vs 13.1% in H1 15), E&I was also weaker in Q3 15 at +1.6% yoy (vs +5.3% in H1 15) but Industrial & Network components was up 1.4% yoy in Q3 15 a sequential improvement (-2.0% yoy in H1 15). The net financial position improved significantly to €955m (from €1,292m in Q3 14), reflecting a sharp reduction in working capital. FY 2015 guidance now targets "above mid-point" of the adjusted EBITDA range of €590–640m (€616–666m excluding WL) while the prior guidance was pointing at the top of the range (consensus €633m). The slightly lowered guidance is due to the softening of telecom and cyclical businesses in some countries, while Q4 is expected to be negatively impacted by the recent weakening of several currencies (mainly BRL, TRY, NOK, AUD).
FY15 guidances lifted amidst progress on WL execution
31 Jul 15
Prysmian reported sales of €3,737m in H1 15, a +13.7% yoy increase corresponding to +7.6% organic growth, enhanced by 8.0% organic growth in Q2 15 (vs 5.9% in Q1 15) and fuelled by solid growth in Energy Projects (+17.4% organic growth yoy ex. WL) and in the Telecom business (+13.1% growth organically). This was partly offset by -2% in Industrial & Network components, which was impacted by weak performances in the oil & gas sector and network components, while automotive suffered from strong competition. Energy & Infrastructure grew +5.3% in H1 15, but with an acceleration in Q2 (+7.7%) boosted by stronger growth in power distribution. The adjusted EBITDA reached €315m in H1 15 correponding to an 8.3% margin, on par with H1 14 (ex. WL). The adj. EBITDA was lower in Energy projects (14.5% in H1 15 vs 16.7% in H1 14), but improved in Energy & Infrastructure (+20bp to 4.3%) and mainly telecoms (EBITDA margin at 12.2% vs 8.8%, margin was a bit lower in Industrial & Network components (7.0% vs 7.7% last year). Prysmian reported the recovery in the WL project is ahead of expectations, allowing it to make a positive revision of €35m to the initial impact estimated. The group now aims to position itself at the top end of the range of €590-640m (vs €560-610m) for the FY15 EBITDA.
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.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
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 - Vp - Excellent interims, outperforming again
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.