(AOF) – CapGemini (+5.63% to 217.50 euros) moved to the top of the CAC 40 index. The consulting and IT services group had a less bad end to 2023 than expected and revealed cautious outlooks in terms of growth for 2024. “This year again, the group plans to grow, with a low point in growth in the first quarter, to strengthen its operating margin and maintain its free generation generation at a high level. cash flow” declared its general director, Aiman Ezzat, whose board of directors proposed the renewal of the mandate.
Last year, the technology company generated net income, group share, up 7% to 1.66 billion euros and an operating margin up 4% to 2.99 billion euros. The latter represented 13.3% of turnover, an improvement of 30 basis points. An increase of only 20 basis points was expected by the market.
The turnover of 22.52 billion euros, is up year-on-year by 2.4% in published data and 4.4% at constant exchange rates, at the bottom of the range communicated to the market of 4 % to 7%.
Capgemini generated organic cash flow of €1.96 billion last year, compared to €1.85 billion in 2022. It significantly exceeded market expectations of €1.77 billion.
Invest Securities underlines that “this 2023 publication is once again solid, particularly in terms of profitability and FCF which slightly exceed guidance and expectations”.
“After two years of record growth, the persistence of macroeconomic pressures and the resurgence of geopolitical tensions led to a gradual deceleration of the market in 2023, in line with our expectations,” the group said.
Anticipated slowdown in growth in 2024
For 2024, the IT services group expects revenue growth of between 0% and 3% at constant exchange rates. This forecast compares to a consensus of 2.6%. It specifies that the impact of variations in scope on growth should be minimal at the bottom of the targeted range and up to 1 point at the top of the range.
The operating margin is expected between 13.3% and 13.6%. It marginally exceeds the consensus of 13.4%, observes Jefferies.
The generation of organic free cash flow is anticipated at around 1.9 billion euros while the market targets 1.968 billion.
“The growth guidance is a bit tight, although it would not be surprising, given the expected growth trajectory (low point in the first quarter and gradual improvement during the financial year) if management was cautious on the second and can raise its expectations during the financial year”, commented Invest Securities. This observation is shared by Stifel.
The board of directors proposed paying a dividend of 3.40 euros per share for 2023, up from 3.25 euros per share for 2022.
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