Slight Q3 miss weighs on Software AG shares

Software AG

27/10/2022 08:48

** Shares in Software AG  SOWGn.DE  fall close to 3% after
the Germany's second-largest software group reported Q3 results
slightly below expectations, confirmed its 2022 guidance
 urn:newsml:reuters.com:*:nFWN31R3B8
    ** The Darmstad-based firm posts Q3 EBIT at EUR 13.9 Mln vs.
EUR 24.5 Mln last year
    ** "Software's 3Q22 results missed consensus in an operating
perspective, despite sequentially accelerating DB bookings
growth" Baader Helvea says
    ** The broker adds that with ambition 2023 to be updated
with 4Q22, uncertainty likely will remain in the market, which
could weigh on the shares
    ** "There is some risk that yet further investments could be
needed beyond the extra investments already announced"
J.P.Morgan says, adding likewise, poor cash conversion would be
viewed negatively
    ** The stock is at the bottom of the German mid-cap
index .MDAXI 
    ($1 = 0.9940 euros)
 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))