Hensoldt share: Setback after the figures

Last Updated: 23. Februar 2024By

Hensoldt stock has dropped more than 5 percent in morning trading after presenting its business figures, now trading at around 32 euros, well below its all-time high of just over 37 euros (as of February 23, 2024, around 11 a.m.).

Despite strong performance in the 2023 fiscal year and a positive long-term outlook due to increased demand for defense products, analysts had expected better numbers for the 2024 forecast and the margin forecast is also only solid.

Hensoldt: Annual figures for 2023 and outlook for 2024 The Bavarian defense electronics company had a very successful fiscal year in 2023: Revenue increased by over 8 percent, reaching the targeted 1.85 billion euros. Hensoldt also reported a growth in orders, from 1.99 billion euros in 2022 to 2.09 billion euros last year.

In terms of results, the specialist for radar, optronics, and avionics performed even better. Adjusted EBITDA increased by almost 13 percent to 329 million euros. The margin was accordingly at 19.9 percent, surpassing the company’s own forecast.

For the current year, Hensoldt is planning for a significant increase in order intake. However, revenue is only expected to reach around 2 billion euros, much less than what analysts had predicted. The company also forecasts an EBITDA margin of 19 to 20 percent, at most matching the margin of 2023.

Hensoldt stock: Why it’s still exciting Despite the disappointing forecast for 2024 revenue and EBITDA margin, investors remain interested in the company. The slight increase in dividend to 40 cents per share did not meet expectations. However, the cautious outlook also allows for potential positive surprises in terms of revenue growth, as Hensoldt believes that order intake will increase significantly.

In addition, the current 2024 forecast includes a revenue growth of over 8 percent and a margin of almost 20 percent, both of which are impressive. Hensoldt’s products are expected to be in high demand in the coming years. Investors should keep an eye on Hensoldt stock.

Source: https://aktienscreener.com/