John Deo

TKH Group Stock Rises 2% After Beating Q4 Earnings Estimates

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    Posted by John Deo Mar 4 - Filed in General - #financialmodelingprep  - 26 views

    Shares of TKH Group climbed 2% following the release of their fourth-quarter earnings, which exceeded expectations on both revenue and profitability metrics.

    Q4 Earnings Highlights: Strong Recovery in Smart Vision & Manufacturing

    • EBITA rose 5% YoY to €66.0 million, surpassing analyst estimates of €64.7 million.
    • Organic revenue growth of 4.7% was driven by the Smart Vision and Smart Manufacturing segments.
    • EBITA margin expanded by 30 basis points to 14.6%, exceeding the anticipated 13.7%.

    These results suggest resilient performance despite broader economic challenges, particularly in high-tech sectors.

    Full-Year 2024: EBITA Declines but Beats Expectations

    While Q4 showed growth, full-year 2024 EBITA declined by 14% to €203.9 million due to:

    • A 1.2% organic revenue decline.
    • A 90 basis points contraction in EBITA margin to 11.9%.
    • Weakness in the Smart Connectivity segment, impacted by destocking issues and delayed facility expansion in Eemshaven.

    Despite the YoY decline, TKH outperformed expectations, as analysts had forecasted €202.6 million, and the company’s revised guidance was between €200M – €210M.

    2025 Outlook: Strong Growth Expected in Smart Vision & Connectivity

    Looking ahead, TKH Group is optimistic about 2025, forecasting:

    \ud83d\udcc8 Organic growth in turnover and EBITA.
    \ud83d\udcc8 Consensus estimates project a 21% EBITA increase, reaching €246 million.
    \ud83d\udcc8 Recovery in Smart Connectivity, supported by:

    • A strong order book.
    • €15 million in expected cost savings.

    With the Smart Vision segment continuing to expand, TKH appears well-positioned for a rebound in 2025.

    Upcoming Strategy Update on September 25

    TKH Group plans to provide a strategy update on September 25, which could offer further insights into growth initiatives, cost optimizations, and expansion plans.

    For investors, this could be a key event to watch as the company navigates towards a stronger 2025 performance.

    Track TKH Group’s Financials in Real-Time

    For more insights into TKH’s financial performance, check out:

    With a strong recovery on the horizon, TKH Group remains an interesting stock to watch in 2025!