Bechtle Stock: Quarterly Results Fall Short of Expectations

Last Updated: 10. November 2023By

The Bechtle stock has dropped significantly after the release of the Q3 figures and is currently trading at around 43 euros, about 5 percent lower (as of November 10th, around 11.30 a.m.). The reason: the IT systems provider has missed expectations, especially in terms of revenue, with its quarterly figures.

Overall, however, the stock has still risen more than 30 percent in 2023. In order to reach the now confirmed annual targets, the Neckarsulm-based company will have to stretch itself, but in the medium and long term, the outlook for the company and the Bechtle stock is still good.

Bechtle with mixed results in the 3rd quarter: Revenue-wise, Q3 was rather a disappointment for Bechtle, especially after the strong first half of the year. The revenues amounted to around 1.48 billion euros, 1 percent higher than in the same period last year, but significantly below the expectation of almost 1.56 billion euros. In particular, the sale of IT components via e-commerce has been weaker recently.

On the other hand, the EBIT rose to 96.4 million euros, 7.8 percent higher than the previous year. Also encouraging: on the one hand, the operating cash flow improved significantly in Q3, to around 125 million euros. On the other hand, the incoming orders increased by 18.2 percent.

Although the quarterly figures have not been well received due to the revenue development, Bechtle has confirmed its forecast for the full year. In addition to a margin roughly at the level of the previous year, the company expects sales and earnings growth of between 5 and 10 percent.

Bechtle stock: Trend remains positive: Bechtle is still on track with its forecast for 2023. After 9 months, the margin is at the level of 2022, sales 6.3 percent and the EBIT 7.5 percent higher than the previous year. However, Bechtle should be able to increase sales again in Q4 in order not to miss its sales targets.

If the 4th quarter proves to be weak, the Bechtle stock could come under pressure again – overall, however, the paper is performing strongly in the current year despite volatile phases. For long-term oriented investors, the Bechtle stock also offers opportunities. The IT systems provider has a good market position, has recently expanded its AI portfolio and is not overvalued.