B&O heads for best day in 5 months on improved Q1 earnings

Bang & Olufsen A/S

11/10/2023 08:53

** Shares in Bang & Olufsen  BO.CO  rise 11% after the
Danish audio and video equipment maker reported improved Q1
earnings
    ** It reports robust customer demand and significant gross
margin improvement in Q1, no longer impacted by extraordinary
component and logistic costs
    ** Q1 revenue grew by 1.2% YoY, while gross margin was 16 pp
higher at 52.6%
    ** "The days of extraordinary challenges (logistics + chip
shortages and high chip prices) are over," Nordnet analyst Per
Hansen says
    ** "Therefore, earnings progress is expected and
understandable and presumably lasting," Hansen adds
    ** B&O maintains 2023/24 outlook, but flags potential
uncertainties from inflation, rising interest rates, the Ukraine
war, and China's economic recovery
    ** The shares are on track for best day in five months

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))