Barco drops on H1 miss, FY outlook cut due to sluggish China
19/07/2023 09:20
** Shares in Belgian technology company Barco BAR.BR fall
12% after it posts H1 sales below expectations and cuts FY
outlook citing China's slower recovery
** Barco reports a 10% jump in H1 sales to 520.9 million
euros ($584.8 mln), missing a consensus estimate of 532.8
million euros cited by Berenberg
** Berenberg says the miss was driven by a Q2 slowdown in
the Enterprise and Healthcare divisions
** The company says it expects "tempered topline growth" due
to China, with FY sales growth in the high single-digit range vs
previous outlook for 10-15% growth
** This is also below Berenberg's FY estimate of 12% growth
** "While management has previously-suggested that the
recovery in China is slower than expected, we note that the
Entertainment division was strong despite this being the group's
largest exposure to China" -Berenberg
** The Entertainment division records 43% sales growth and a
positive EBITDA vs loss a year earlier
** The stock is on track for worst day since October 2020
(Pierre John Felcenloben)
((pierrejohn.felcenloben@thomsonreuters.com))