Embracer hits bottom of STOXX as guidance disappoints

Embracer AB

22/05/2025 09:07

** Shares in Swedish gaming group Embracer EMBRACb.ST fall nearly 16% to the bottom of STOXX 600 .STOXX index with analysts pointing to a weak outlook pressuring the stock despite Q4 earnings beat

** Embracer expects 2025/26 net sales to be slightly above FY 2024/25, and EBITDAC and adjusted EBIT to be broadly in line with FY 2024/25, on a pro forma basis

** Pareto Securities analyst Vincent Edholm says the company's FY guidance came in below consensus

** "We think it mainly has to do with the game release of one of their biggest franchises being pushed back to FY26/27," Edholm says

** Redeye analyst Hjalmar Ahlberg also points to the weaker-than-expected outlook, and says the brokerage is likely to lower its EBIT forecasts on the back of the guidance

** Shares fell to a six-week low; on track for their biggest one-day fall since May 2023

 (Reporting by Greta Rosen Fondahn)

 ((Greta.RosenFondahn@thomsonreuters.com))