Sopra Steria heads for worst day in 45 mths on guidance cut

Sopra Steria SA

19/07/2024 08:46

** Sopra Steria  SOPR.PA  shares slump more than 10% after
the French IT consulting company cut FY sales guidance and
missed H1 expectations as customers spend less
    ** It eyes a "relatively stable level" of organic revenue
growth in 2024, versus previous guidance of 2-4% growth 
    ** It estimates its H1 sales grew 0.3% organically to 2.95
billion euros  ($3.21 billion)
    ** The group expects no significant rebound in H2, pointing
to a "highly uncertain environment" in France, short-term
problems in the aeronautics sector and delays in an important
contract in the UK
    ** JPM sees a negative read-across for the wider European IT
services sector, including French peer Capgemini  CAPP.PA 
    ** Sopra Steria touches its lowest price since early
November, and heads for its worst one-day slump since end-Oct
2020, if losses persist
    
($1 = 0.9187 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))