Lights maker Signify falls after missing Q2 profit expectations

Signify

26/07/2024 10:03

** Shares in Dutch Signify  LIGHT.AS  are down 5.8% after
falling as much as 9.3% 
    ** The world's biggest maker of lights missed second-quarter
profit expectations 
    ** Adjusted earnings before interest, taxes, and
amortization (EBITA) dropped 13.2% on the year to 118 million
euros ($128.11 million), missing the 138 million euros analysts
expected on average in a company-compiled consensus
    ** ING notes that Signify missed on organic growth by 140
bps and the margin is 110 bps lower than expected
    ** "The weakest performance was in professional (segment),
where the organic decline accelerated compared to the previous
quarter," the broker added
    ** J.P. Morgan says that higher indirect costs affected the
operating margin
    ** The broker also notes that the benefit from the
cost-saving plan announced in December 2023 was very limited in
the quarter
    ** Up to Thursday's close, shares were down 20.3% YTD
    

 (Reporting by Alberto Chiumento,)
 ((Alberto.Chiumento@thomsonreuters.com;))