The Spie logo near Nantes
Spie raised its annual operating profit margin forecast on Thursday but fell on the stock market, with the French group’s organic and production growth having notably disappointed analysts’ expectations.
The company specializing in engineering, energy and communications reported a 13.1% increase in production over the first nine months of the year, to 7.13 million euros, including +1 .7% organic growth, well below JPMorgan’s expectations of 3.9% growth.
“Today’s organic results are clearly disappointing and the focus will likely be on the dynamic in France, where management is announcing a slowdown in fiber optic activities,” JPMorgan analysts said in a note.
Stifel analysts also point out that the increase in production remains below the consensus and the broker’s estimates, mainly due to the poor performance in France and Central Europe.
On the Paris Stock Exchange, around 09:35 GMT, the stock fell 5.9% to 32.72 euros, compared to a loss of 0.96% for the SBF 120 index.
Spie nevertheless raised its annual Ebita margin target to “at least 7.1%” of production” against a previous forecast of “at least 7%”.
Given Spie’s “persistent uncertainty over medium-term growth prospects”, the stock could remain under pressure, Stifel analysts nevertheless point out.
(Written by Mara Vîlcu, edited by Augustin Turpin)
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