Evonik Industries (ETR:EVKn) on Thursday said it expects weaker third-quarter earnings and cut its full-year outlook, sending shares lower as sluggish demand weighed on performance across all segments.
The German specialty chemicals maker said customers acted cautiously over the summer months, with no signs of a recovery in demand. It now expects persistently weak conditions to continue through the end of the year.
For the third quarter, Evonik forecast adjusted earnings before interest, taxes, depreciation and amortization at €420 million to €460 million.
That is about 8% below Jefferies’ estimate of €476 million and 12% lower than the Visible Alpha consensus of €501 million at the midpoint.
The company also narrowed its full-year adjusted EBITDA guidance to around €1.9 billion, down from a prior range of €2 billion to €2.3 billion.
Jefferies had forecast €1.89 billion, while Visible Alpha consensus stood at €1.96 billion.
Based on the new outlook, the fourth-quarter result implied by the guidance is about €391 million, which would be 12% ahead of Jefferies’ estimate of €348 million and 4% above the consensus of €375 million.
However, the contribution would fall short of Evonik’s historical average, representing roughly 100 basis points less than the usual 19% share of the full year.
Source :
https://www.investing.com/news/stock-market-news/evonik-shares-drop-as-weaker-q3-results-trigger-lower-fullyear-outlook-4255346
