Stratec falls as FY prelims miss targets, sees margin decline in 2023

Stratec SE

10/03/2023 08:33

** Shares in Stratec  SBSG.DE  slide more than 9% after the
German biomedical technology company reports 2022 results below
its targets and sees lower EBIT margin in 2023
    ** The stock hits the bottom of the German small-cap index
 .SDAXI  that falls 1.7% with only one stock in the black
    ** Its preliminary FY revenue falls 8.3% in constant
currency to 274.6 mln euros ($290.8 mln), more than the 5%-8%
drop it had guided for
    ** FY 2022 adjusted EBIT margin is expected to be 16.4%,
missing guidance of 16.5%-18.5%
    ** Stratec forecasts 2023 adjusted EBIT margin of
12.0%-14.0%, citing inflationary pressures 
    ** Berenberg says both results and guidance are "softer than
expected"
    ** "We think several supply chain shortages for key parts in
some of the group's recent product launches played a significant
role in its inability to match its recently updated targets,"
the broker says
    ** "The adjusted EBIT margin range is notably below our 16%
adjusted EBIT margin estimate, implying more than 10% EPS
downgrades," Berenberg adds
    ** Stratec's shares are down 12.5% YTD

($1 = 0.9442 euros)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))