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ABB - Abb News Story

$31.77 -0.3  -1.0%

Last Trade - 12/04/21

Sector
Industrials
Size
Large Cap
Market Cap £47.31bn
Enterprise Value £47.86bn
Revenue £19.06bn
Position in Universe 189th / 6825

BUZZ-ABB: "Vague", "surprisingly weak" outlook dents shares

Thu 4th February, 2021 8:47am
** Shares in ABB  ABBN.S  fall 3.1%, after the Swiss
industrial robots and drives maker provides a "vague" outlook,
while surprisingly turning to Q4 loss  urn:newsml:reuters.com:*:nL8N2KA0YX
    ** ABB reported Q4 net result turning to loss of $79 mln,
adding it expects comparable revenue growth broadly in line with
its long-term target range, and clear y/y margin accretion for
2021
    ** The company adds the outlook remains muted for segments
such as oil and gas, conventional power generation and marine,
while raw materials costs are rising
    ** JP Morgan says net income turned to loss due to a $183
mln closing adjustment for the grid disposal and a higher tax
rate
    ** The broker adds ABB normally shows a clear sequential
margin expansion in Q1 hence this time the guidance is
surprisingly weak 
    ** Jefferies points out 2021 outlook is "a lot more vague"
vs peers, adding ABB's expectation of organic order growth to
resume in Q2 might suggest a worse Q1 order guidance vs cons at
-0.3% 
    ** Liberum sees a limited scope for earnings upgrades in
2021, given the continued mixed outlook
    ** Stock is among the worst performers on STOXX 600 index
 .STOXX  


 ((elizaveta.gladun@thomsonreuters.com))
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