Securitas falls on weak FCF generation after in-line Q1 earnings

Securitas AB

08/05/2024 08:48

** Shares in Securitas  SECUb.ST  fall 3.5% with analysts
pointing to weak free cash flow (FCF) generation after the
Swedish security services group posted in-line Q1 earnings
    ** Q1 operating income before amortization came in at SEK
2.36 billion ($216.67 million), broadly in line with SEK 2.33
billion seen in a company-compiled consensus
    ** ABG Sundal Collier analyst Stefan Knutsson says the drop
is related mainly to weaker FCF generation and uncertainty about
Europe's profitability    
    ** The company said in a statement it faced challenges in
its airport security business in Europe 
    ** Jefferies also says FCF generation is weak, as expected
    ** The broker adds the stronger organic growth is largely
driven by pricing and is offset by weaker margins
    ** The stock is one of the worst performers on STOXX 600
index  .STOXX 

($1 = 10.8921 Swedish crowns)

 (Reporting by Jagoda Darlak)
 ((Jagoda.Darlak@thomsonreuters.com; +48 58 769 65 40;))