Solvay drops after cost savings-driven beat

Solvay SA

06/11/2024 13:22

** Shares in Belgian chemicals group Solvay  SOLB.BR  fall
around 5%, with analysts pointing to low-quality earnings beat
and profit taking as a likely reason for the drop
    ** "The market is arguably less excited about the
outperformance of EBITDA vs expectations than would normally be
the case given that this is mainly driven by corporate cost
savings," Berenberg analyst Sebastian Bray says
    ** Bray adds that there likely may be some profit taking
given good share performance this year; stock up 30% YTD
    ** Q3 underlying EBITDA came in at 259 million euros vs
analysts' forecast of 250 million euros, but the beat was driven
by "a big beat in the lumpy Corporate line," KBC adds
    ** "The underlying performance of the operating segments
excluding corporate was modestly below consensus expectations in
my view" - KBC

 (Reporting by Dimitri  Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com;))