No guidance hike and rising costs, Bang & Olufsen shares reverse course

Bang & Olufsen A/S

06/10/2021 11:44

(Updates share move, add analyst comments)
    ** Shares in Danish luxury TV and stereo maker Bang &
Olufsen  BO.CO  fall about 6% in afternoon trade on Wednesday
after rising as much as 7.8% in the morning
    ** Co's Q1 2021/22 EBIT of DKK 7 million ($1.09 million) on
a 44% revenue growth and confirmed FY outlook  urn:newsml:reuters.com:*:nASN001QD8 got
overshadowed by rising costs and the lack of guidance increase 
    ** Despite strong earnings for the three months to August,
the company failed to impress some investors who were hoping for
an outlook upgrade, according to ABG analyst Benjamin
Silverstone 
    ** Silverstone says the company would want to await more
insight into Q2, prior to revaluating its expectations for the
year 
    ** Furthermore, there has been an increased focus on rising
freight costs and recent guidance downgrades from firms such as
GN Store Nord  GN.CO  and Ambu  AMBUb.CO , which might provide
some concern for Bang & Olufsen, the broker adds

    
    
 
($1 = 6.4255 Danish crowns)

 (Reporting by Aleksandra Jasiurska)
 ((Aleksandra.jasiurska@thomsonreuters.com))