Eurofins announced strong FY21 results with a beat across sales, EBITDA and net income. Management also upgraded the outlook for FY22-24, which, even with zero COVID-19 related revenues assumed in FY23-24, is slightly ahead of consensus and our estimates. However, with the margin improvement reversing in the near term with the decrease in COVID-19 revenues, coupled with margin dilutive M&As, we maintain our cautious stock recommendation.
23 Feb 2022
Strong FY21 results; now looking beyond COVID-19 tailwinds
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Strong FY21 results; now looking beyond COVID-19 tailwinds
- Published:
23 Feb 2022 -
Author:
Nupur Gupta -
Pages:
4
Eurofins announced strong FY21 results with a beat across sales, EBITDA and net income. Management also upgraded the outlook for FY22-24, which, even with zero COVID-19 related revenues assumed in FY23-24, is slightly ahead of consensus and our estimates. However, with the margin improvement reversing in the near term with the decrease in COVID-19 revenues, coupled with margin dilutive M&As, we maintain our cautious stock recommendation.