Eurofins Scientific reported a lackluster H1 performance and unimpressive guidance increase. The group continued to benefit from COVID-19 testing which helped offset a miss in Core Business (organic growth of 5.3% vs 6.5% target) and supported the EBITDA beat. Moreover, the raised guidance implies a deterioration in organic growth and the adjusted EBITDA margin in FY22. No wonder the stock slumped >7%.
28 Jul 2022
Low quality H1 beat; guidance upgraded but outlook uncertain
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Low quality H1 beat; guidance upgraded but outlook uncertain
- Published:
28 Jul 2022 -
Author:
Nupur Gupta -
Pages:
4
Eurofins Scientific reported a lackluster H1 performance and unimpressive guidance increase. The group continued to benefit from COVID-19 testing which helped offset a miss in Core Business (organic growth of 5.3% vs 6.5% target) and supported the EBITDA beat. Moreover, the raised guidance implies a deterioration in organic growth and the adjusted EBITDA margin in FY22. No wonder the stock slumped >7%.