- Heidelberg Materials’ 2Q revenue met estimates at €5.51 billion, down 1.3% year-over-year (y/y).
- Revenue breakdown by region:
- Europe: €2.54 billion, down 2.3% y/y, beating estimate of €2.29 billion.
- North America: €1.43 billion, up 1.5% y/y, close to estimate of €1.44 billion.
- Asia-Pacific: €851 million, down 2.6% y/y, slightly below estimate of €857.8 million.
- Africa-Mediterranean-Western Asia: €545 million, down 7.6% y/y, above estimate of €519.6 million.
- Group Services revenue was €350 million.
- Profit from current operations was €971 million, up 4.3% y/y.
- Results from current operations:
- North America: €325 million, up 27% y/y, beating estimate of €275.1 million.
- Asia-Pacific: €81 million, down 16% y/y, below estimate of €93.6 million.
- Africa-Mediterranean-Western Asia: €100 million, down 13% y/y.
- Group Services: €11 million.
- First half 2024 results:
- Profit: €574 million, down 20% y/y.
- Revenue: €9.99 billion, down 4.6% y/y.
- Year forecast:
- Company expects profit from current operations to be between €3.0 billion and €3.3 billion, close to estimate of €3.12 billion.
- Return on Invested Capital (ROIC) expected to be around 10%.
- Company anticipates demand in the construction sector will stabilize at a low level globally due to inflation and high financing costs impacting residential construction.
- Heidelberg Materials confirms its 2024 outlook and expects RCO to be between €3.0 billion and €3.3 billion.
A look at Heidelberg Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
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
Heidelberg Materials AG, a global producer of building materials and solutions, has received strong Smartkarma Smart Scores across the board. With high scores in Value, Dividend, and Growth, the company is positioned favorably for long-term success. These scores indicate that Heidelberg Materials is considered to be undervalued relative to its financial performance, offers attractive dividend potential, and shows promising growth prospects in the future.
Additionally, Heidelberg Materials scored high in Momentum, reflecting positive market momentum and investor sentiment towards the company. While its Resilience score is slightly lower, the overall outlook for Heidelberg Materials appears bullish. Investors may view this company as an opportunity for potential growth and value appreciation in the long run, supported by its strong performance across key financial factors.
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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