- Edenred‘s 3Q operating revenue was €619 million, a 6.2% increase year-on-year, but below the estimated €644.2 million.
- Benefits and engagement operating revenue grew by 8.7% year-on-year to €398 million, missing the estimate of €411.6 million.
- Mobility operating revenue increased by 3.4% year-on-year to €152 million, below the estimated €161.3 million.
- Complementary solutions operating revenue slightly declined by 1.4% to €69 million, below the estimate of €73.1 million.
- Like-for-like (LFL) operating revenue saw a robust growth of 10.8%.
- Benefits and engagement LFL revenue grew by 11.7% while mobility LFL revenue achieved a 13.2% increase, short of the 15.3% estimate.
- Complementary solutions LFL revenue increased by 0.9%, which is below the forecasted 4.72%.
- Total revenue reached €682 million, marking a 6.2% year-on-year growth, but missed the estimate of €698.2 million.
- LFL revenue increased impressively by 11.5%.
- For the nine months, LFL operating revenue rose by 13.8%.
- Edenred forecasts EBITDA for the year to be between €1.25 billion to €1.29 billion, with the earlier forecast being €1.23 billion to €1.30 billion, and an estimate of €1.26 billion.
- The company plans to challenge an Italian proposal to cap meal voucher commissions, which might impact EBITDA by approximately €60 million in 2025.
- If the Italian plan proceeds, Edenred asserts it can achieve at least 10% organic EBITDA growth in 2025.
- If the proposed Italian law does not proceed, Edenred aims for at least 12% organic EBITDA growth in 2025.
- An Italian procedural hearing regarding alleged fraud involving Edenred is anticipated by year-end, as mentioned by Julien Tanguy, executive vice president for finance.
Edenred on Smartkarma
On Smartkarma, top independent analysts are covering Edenred, a global payment solutions company. In a report by the Value Investors Club titled “Edenred Se (EDEN) – Friday, Apr 19, 2024,” the sentiment leans bullish despite the stock declining by 19.50% year-to-date due to a legal investigation in Italy. The report highlights Edenred‘s strong financial performance, dominant industry position, solid balance sheet, cash flow generation, and growth potential, presenting it as a long opportunity for investors. The analysis, based on publicly available sources, emphasizes the company’s resilience amidst challenges.
A look at Edenred Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Edenred shows a promising long-term outlook. The company scores high in dividend, growth, resilience, and momentum, indicating strong performance in these areas. Edenred, known for offering prepaid vouchers for various products and services like restaurant meals and childcare, has positioned itself well in the market. With a solid dividend score of 4, investors can expect consistent returns. Their growth score of 3 suggests potential for expansion, while resilience and momentum scores of 3 each reflect the company’s ability to withstand challenges and maintain a positive trajectory.
Edenred’s overall Smartkarma Smart Scores showcase a favorable outlook for the company in the long term. Their strong performance in dividend, growth, resilience, and momentum metrics positions them well for future success. As a provider of vouchers used for rewarding employees and customers, Edenred has established itself as a reliable player in the industry. Investors may find the company appealing based on its robust scores across various key factors, indicating a positive trajectory for Edenred moving forward.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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