CVS has issued a mixed H1 trading update. Top-line commentary is reassuring but the adverse themes flagged for the first 4 months of FY19 continued into Nov-Dec, resulting in a flat H1 EBITDA. This outcome and prudence prompts us to lower our FY19 EPS by 13% and outer years by 8%-11%. Given the marked de-rating since July, forecast risk we feel was being priced in. Going forward, we welcome future acquisitions being reevaluated/slowed and an increased focus on cost savings, cash generation and i ....
29 Jan 2019
Weak H1 prompts a rebasing of expectations and strategic focus
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Weak H1 prompts a rebasing of expectations and strategic focus
CVS Group plc (CVSG:LON) | 940 -84.6 (-0.9%) | Mkt Cap: 674.5m
- Published:
29 Jan 2019 -
Author:
Sahill Shan -
Pages:
3
CVS has issued a mixed H1 trading update. Top-line commentary is reassuring but the adverse themes flagged for the first 4 months of FY19 continued into Nov-Dec, resulting in a flat H1 EBITDA. This outcome and prudence prompts us to lower our FY19 EPS by 13% and outer years by 8%-11%. Given the marked de-rating since July, forecast risk we feel was being priced in. Going forward, we welcome future acquisitions being reevaluated/slowed and an increased focus on cost savings, cash generation and i ....