Renk Shares Unmoved by Upgraded Forecasts
Frankfurt, Germany
Despite an increase in profit projections, shares of German industrial group Renk (DE000RENK730) remained flat on Tuesday.Sluggish Recovery
The company's stock has struggled to recover from a recent price drop. Analyst Victor Allard of Goldman Sachs characterized Renk's second-quarter performance as mixed.- The company raised its full-year profit forecast.
- However, Renk's shares have fallen by more than 10% since the beginning of the year.
- Allard attributed the lack of stock response to Renk's continued supply chain challenges.
Mixed Performance
Renk reported a 4% increase in second-quarter revenue, reaching 201 million euros.
Despite the positive revenue growth, operating profit declined marginally by 1.5% to 19.3 million euros.
The company cited rising raw material and logistics costs as factors contributing to the profit decline.
Upgraded Forecast
Renk increased its full-year profit forecast, expecting earnings per share (EPS) to range between 2.60 and 2.90 euros.
The previous forecast had estimated EPS between 2.30 and 2.60 euros.
However, Allard highlighted that Renk's upgraded forecast is still below market expectations.
Shares of Renk closed at 23.44 euros on Tuesday, a decrease of 2.8% from the previous close.
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