Randstad shares track best day in over two decades after Q3 beat

Adecco AG

Yesterday 08:54

** Randstad shares leap 16%, topping pan-European STOXX 600 index .STOXX, after the recruitment firm beat the market view on both sales and profit
** Its Q3 organic revenue rises 3.9%, ahead of the 2.9% consensus forecast, while underlying EBITA at €211 million ($237 million), beats the €200 million market view
** KBC Securities says a gross margin in line with expectations, at 17.8%, means the stronger revenue growth flows carries through to the rest of the income statement
** KBC adds the results should make up for share weakness following disappointing results at peer Manpower MAN.N last week; between Oct. 15 and Tuesday's close, Randstad shares lost about 4.4%
** Jefferies says revenue momentum should continue to exceed expectations in Q4, although a softer gross margin could limit further upside
** Shares are on track for their best day in 24 years
** Peer Adecco ADEN.S  rises 7.6%
($1 = 0.8913 euros)

(Reporting by Jakob Van Calster)
((jakob.vancalster@thomsonreuters.com))