Synlab dives after 2023 outlook cut on lower COVID testing

Synlab AG

07/02/2023 08:42

** Shares in Synlab  SYAB.DE  slump more than 19%, on track
for their worst day ever, after the German laboratory services
group cuts 2023 outlook on falling COVID testing volumes
    ** "Synlab prelim FY22 numbers missed expectations slightly
... but warned harshly on FY23 outlook as COVID test regime is
over," a local trader says
    ** The company on Monday lowered 2023 revenue target to
around EUR 2.7 bln from EUR 3.0 bln previously, and sees adj.
EBITDA margin of 16-18% vs prior guidance of 18-20%
    ** It cites lower COVID-19 testing revenue and lower M&A
contribution for the cuts
    ** Synlab expects to report 2022 revenue of around EUR 3.25
bln ($3.48 bln) vs analysts' EUR 3.3 bln estimate in Refinitiv
data, and adj. EBITDA margin of 23% vs estimate of 24%
    ** "SYAB shares only lost 4% in (Monday's) extended trading.
This could only be attributed to the fact that shares are
already in the doldrums," the trader adds
    ** The Synlab stock hits the bottom of German's small-cap
index  .SDAXI 
    ** French peer Eurofins  EUFI.PA  falls around 3%
($1 = 0.9343 euros)
 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))