Elior drops on Q1 miss as client renegotiation, retention rates lag

Elior SA

26/01/2023 08:37

** Shares in Elior  ELIOR.PA  fall 7% after the French
catering group's Q1 results miss estimates
    ** Citi notes Elior's revenue of 1.23 billion euros  ($1.34
billion), up 11.7% y/y, is "slightly weaker" as it comes 1%
below consensus expectations 
    ** Citi also says retention rate of 92.6% excl. contract
renegotiations is better than post-2018 levels but a step back
from 93.4% reported in Q3
    ** J.P Morgan adds the pace of contract renegotiation, at
73%  by the end of 2022 according the group, "seems to be behind
schedule target of 90%"
    ** Bernstein says it expected upgraded FY guidance, while
the company maintained its expectations    
    ** "We remain cautious on the name post the recent rally
given the early stage of the turnaround, execution and
integration risks post the DMS transaction, and concerns
around ambitious synergies", the JPM adds
    ** Up until Wednesday's close, the stock, which currently
sits at the bottom of France's SBF 120 index  .SBF120 , gained
over 15% over the first weeks of 2023
($1 = 0.9160 euros)
 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))