CD Projekt drops as analysts signal weak earnings momentum ahead

CD Projekt SA

27/11/2024 11:00

** Shares in Polish videogame maker CD Projekt  CDR.WA  drop
as much as 5.7%, as analysts call Q3 profit beat "insignificant"
while expecting weaker earnings momentum in the following
quarters
    ** CD Projekt on Tuesday posted a 61.5% drop in Q3 net
profit to 78.1 million zlotys ($19 million), less than expected
    ** Analysts say though Q3 results were solid, investors feel
they were not sufficient to assess future outlook with ease
    ** Given CDR's strong stock price performance over the last
five days, "we do not rule out profit-taking by some investors",
says Piotr Bogusz from Erste Group
    ** Bogusz points to weaker earnings momentum in the
following quarters, lack of "clear beat" in Q3
    ** "CD Projekt reported good financials, slightly ahead of
market expectations on EBITDA, but the beat seems
insignificant", says mBank analyst Piotr Poniatowski
    ** Stock at the bottom of Poland's blue-chip index WIG20
 .WIG20 
    

 (Reporting by Marta Maciag and Julia Kotowska)
 ((Marta.Maciag@thomsonreuters.com; +48 58 746 91 96))