No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Nordex Group soared on Friday, after the European wind turbine manufacturer boosted annual guidance on the back of forecast-beating quarterly numbers.
Third-quarter earnings before interest, tax, depreciation and amortisation came in at 278m, up from 136m a year previously, while revenues rocketed to 2.2bn from 1.7bn. Consensus had been for EBITDA of 241m on revenues of 2.2bn.
The above-forecast performance was attributed to higher margins in the service unit and "strong" project execution, while the anticipated risks in Nordex's projects division "did not materialise to the extent anticipated", the company confirmed.
As a result, the Germany-headquartered group now expects the full-year EBITDA margin to be in the range of 11.5% and 12.5%, comfortably ahead of previous guidance for between 8% and 11%. The third-quarter EBITDA margin widened to 12.7% from 8%.
The annual sales outlook was left unchanged at between 8.2bn and 9bn.
As at 1115 BST, the Frankfurt-listed shares had surged 13%.
Jose Luis Blanco, chief executive, said: "The third quarter shows what our teams can deliver. Strong execution in projects and higher profitability in service has put us in a very good position for the final quarter.
"We are raising our EBITDA margin guidance and remain focused on profitable growth."
Nordex, which was founded in Denmark in 1985 and employs around 11,100 people worldwide, is due to publish full third-quarter results on 5 November.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.