Orion drops to bottom of STOXX on worse-than expected Q4 EBIT, outlook
13/02/2024 13:27
** Shares in Orion ORNBV.HE fall around 10% after the
Finnish drug maker announced 2024 outlook and new financial
objectives for 2024-2028 below analysts' expectations
** Jefferies says the company's 2024 outlook implies EBIT
14% below consensus, excluding milestones
** Orion sees 2024 net sales in the range of 1,340 - 1,410
million euros, and operating profit at 270 - 310 million euros,
assuming a milestone payment of 70 million euros ($75.40
million) for its cancer drug Nubeqa
** Q4 EBIT came in at 92.9 million euros, a 15% miss when
excluding the 30.7 million euros from the transfer of Orion
Pension Fund to an external pension insurance company, Jefferies
says
** For 2024-28, Orion aims to grow sales with a CAGR of at
least 8%; grow operating profit faster than sales; and increase
dividend annually with a payout ratio of 50-100%
** "Assuming 10-15% CAGR on EBIT based on 2024 base of €290m
implies €424m-€507m for 2028, 14-25% below current VA cons,"
Jefferies says
** If losses hold, Orion will see its worst day since July
2020; the stock is at the bottom of the pan-European STOXX 600
.STOXX index
($1 = 0.9284 euros)
(Reporting by Elsa Ohlen)
((elsa.ohlen@thomsonreuters.com;))