Eurofins’ Q3 revenue came in slightly ahead of street expectations, but the share price came under pressure today (down c.7%). Although management raised its FY2021 revenue outlook, it kept EBITDA guidance unchanged, implying a softer profitability (albeit still improving yoy). This is attributable to COVID-19-related testing demand moving away from margin accretive RT-PCR to cheaper rapid antigen tests. We will revise our estimates and target price to incorporate the Q3 update, while maintainin ....
21 Oct 2021
Q3 signals tapering of COVID-19-related windfalls
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Q3 signals tapering of COVID-19-related windfalls
- Published:
21 Oct 2021 -
Author:
Vansh Mehta | Nupur Gupta -
Pages:
3
Eurofins’ Q3 revenue came in slightly ahead of street expectations, but the share price came under pressure today (down c.7%). Although management raised its FY2021 revenue outlook, it kept EBITDA guidance unchanged, implying a softer profitability (albeit still improving yoy). This is attributable to COVID-19-related testing demand moving away from margin accretive RT-PCR to cheaper rapid antigen tests. We will revise our estimates and target price to incorporate the Q3 update, while maintainin ....