Eiffage stays the course and analysts welcome its half-year results


PARIS (Agefi-Dow Jones)–The action of the construction and concessions group Eiffage fell on Thursday, the day after the publication of half-year results, however hailed by analysts. The stock fell 1.1% to 86.86 euros, ie less than the SBF 120 index which at the same time dropped 1.5%.

Eiffage confirmed its annual outlook on Wednesday when it published sharply improved results for the first half of 2022. These results are higher than their pre-health crisis level. According to Stifel and UBS, this strong performance could lead the consensus to revise its annual estimates upwards.

Stifel observes, however, that the Works branch of Eiffage has underperformed compared to its peers and remains in its eyes the Achilles heel of Eiffage. In the sector, the financial intermediary, which displays a “hold” recommendation over Eiffage, continues to prefer Vinci, on which it is the “purchase”.

On the other hand, UBS maintained its “buy” recommendation on Eiffage.

In January and June 2022, Eiffage generated net income group share of 354 million euros, up 36.2% compared to the first half of 2021. Current operating income also increased by 36.2% to reach 925 million euros in the first half of 2022. This results in an operating margin of 9.8%, compared to 7.8% in the first half of 2021.

As for turnover, it rose by 8.6% to reach 9.45 billion euros. Activity in Works increased by 6.4% to 7.86 billion euros, while activity in the Construction branch increased by 5.1% to 2.07 billion euros. At constant exchange rates and perimeter, the growth in total revenue reached 7.6%.

According to a FactSet consensus, analysts on average expected a net profit of 333 million euros, an operating result (Ebit) of 870 million euros and a turnover of 9.37 billion euros.

At the end of June 2022, the order book reached 18 billion euros, up 9% year-on-year.

Eiffage has confirmed its annual outlook. The group expects further growth in activity and results in 2022. “Concessions, which benefit from a favorable comparison base in the 1st half, should show more sustained growth” than Works, said Eiffage.

According to the FactSet consensus, analysts on average anticipate a net profit of 873 million euros, an operating result (Ebit) of 2.11 billion euros and a turnover of 19.72 billion euros.

In parallel with its half-year results, Eiffage also announced that it had entered into exclusive negotiations with a view to holding more than 80% of the Sun’R group, for an undisclosed amount. Founded in 2007, Sun’R develops and produces photovoltaic electricity and also supplies short circuit green electricity.

-Vincent Alsuar, Agefi-Dow Jones; 01 41 27 47 39; [email protected] ed: ECH

Agefi-Dow Jones The financial newswire

(END) Dow Jones Newswires

September 01, 2022 09:39 ET (13:39 GMT)



Source link -88