Cancom drops in early Frankfurt trade on 'disappointing' Q1 figures, guidance cut

Cancom SE

04/05/2022 07:36

** Shares of German IT firm Cancom  COKG.DE  are down 8.3%
in early Frankfurt trade on "disappointing" Q1 preliminary
figures  urn:newsml:reuters.com:*:nASM000A49
    ** The company reported on Q1 revenue down 10.8 percent to
EUR 300.9 million ($316.52 million) and lowered 2022 forecast
 urn:newsml:reuters.com:*:nL5N2VW1SU
    ** It now expects significant revenue growth (previously:
very significant); the annual forecast for the gross profit,
EBITDA and EBITA has also been changed to significant growth
(previously: very significant)
    ** "Following a strong performance in 2H21 and bullish FY22
guidance in March, Cancom ad-hoc released very disappointing
1Q22 prelims alongside an early profit warning on the back of
deteriorating supply conditions and rising macro uncertainties",
Jefferies says
    ** It flags that Cancom management sees strict lockdown
measures in Asia further tightening supply bottlenecks whilst
the current political environment causes delays in public sector
business
    ** "Bearish report and bad future expectations as the Asian
situation gets even worse will impact shares," the local trader
says
    ** The stock is at the bottom of the German mid-caps index
 .MDAXI 


($1 = 0.9507 euros)

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))