Shares of Accelleron Industries saw a significant rise on Tuesday following the upgrade of its revenue growth guidance for the year. The Swiss engine-turbocharger maker reported strong performance in the first half, leading to increased optimism for the future.
Impressive First Half Results
Accelleron announced that its revenue grew by 20% in constant currency during the first half of the year. As a result, the company now expects organic revenue growth of approximately 13% for the full year. This estimate increases to around 15% when taking into account the contribution from the recently acquired Officine Meccaniche Torino. These projections represent a significant jump from the previous guidance of between 2% and 4%.
Profitability Expectations
Accelleron also confirmed that its operational earnings before interest, taxes, and amortization margin will likely fall at the lower end of its mid-term guidance range of 23% to 26%. Despite this conservative estimate, analysts from UBS believe that the company's profitability could exceed expectations.
Analysts Optimistic
According to UBS analysts Sebastian Vogel and Patrick Rafaisz, Accelleron's suggested sales growth of 15% and the indicated margin of 23% imply a net income of approximately 160 million Swiss francs ($184 million). This significantly surpasses the Refinitiv consensus estimate of CHF114 million, indicating substantial upside potential.
Conclusion
With a strong first half performance and an upgraded revenue growth guidance, Accelleron Industries is poised for success in the coming months. Investors are confident in the company's ability to exceed expectations and generate substantial returns.
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