- Profit Margin Outlook: Expected adjusted EBITDA margin is projected to be between 27% to 29%, a decrease from the previously seen over 30%, and slightly lower than the 29.8% estimate.
- First Half Sales: Reported sales reached €1.68 billion, matching the estimate of €1.67 billion.
- Market Volatility: Due to high volatility and limited predictability, the company has adopted a more cautious outlook for the second half of the fiscal year 2024.
- Performance in Asia/Pacific: Continued market weakness in China resulted in a revenue decrease of 4.7% in constant currencies.
- EBITDA Decline: The group’s underlying EBITDA dropped by 8.8% to €471 million in the first half, mainly due to volume and product mix effects.
- Customer Behavior: While demand for some products has normalized, customers are still reducing inventories or are hesitant to invest in other product groups.
- 2024 Sales Revenue Projection: Sales revenue for 2024 is expected to remain at the prior-year level, with slight fluctuations ranging from low single-digit negative to low single-digit positive sales development, compared to mid to high single-digit percentage growth previously observed.
- Cost-Cutting Benefits: The company anticipates increasingly positive impacts from its cost-cutting program, which aims to save over €100 million, as the year progresses.
- Analyst Recommendations: The stock has received 4 buy ratings, 3 hold ratings, and 1 sell rating.
A look at Sartorius AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.2 |
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
Investors eyeing Sartorius AG for the long term are met with a mixed bag of Smartkarma Smart Scores, indicating various aspects of the company’s performance. With a moderate overall growth score of 3, Sartorius AG shows potential for expansion and development in the coming years. However, the Value, Dividend, Resilience, and Momentum scores all hover around the 2 mark, suggesting a more cautious approach may be warranted.
Sartorius AG, a manufacturer of precision electronic equipment and components, stands at a crossroads with its Smartkarma Smart Scores reflecting different facets of its financial health. Despite a promising growth outlook, the company’s overall performance in areas such as value, dividend, resilience, and momentum may give investors pause for thought as they assess the long-term prospects of this global player in precision scales and biomolecular equipment.
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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