Carl Zeiss Meditec shares rise on strong Q1 results and reaffirmed guidance
Shares of Carl Zeiss Meditec, a German medical technology company, surged on Friday after the company reported better-than-expected results for its fiscal first quarter ended December 31. The company also reaffirmed its guidance for the fiscal year, despite lingering investor doubts.
Record revenue and adjusted earnings
Carl Zeiss Meditec reported revenue of €475 million ($512 million) for the quarter, up 1% compared to the same period last year, and 3.3% adjusted for currency effects. Adjusted earnings before interest and taxes (EBIT) dropped 27% to €46 million. UBS analysts noted that the results exceeded their expectations, as they had forecasted revenue of €455 million and adjusted EBIT of €32 million.
Investor scepticism and reaffirmed guidance
Although investors were initially sceptical about the company’s ability to achieve its guidance for the fiscal year, Carl Zeiss Meditec confirmed its outlook, expecting further market growth despite geopolitical uncertainties and a challenging macroeconomic environment. The company anticipates revenue to be in line with the projected market growth, with EBIT expected to remain around the previous year’s level of €348.1 million. UBS analysts noted that the company’s strong Q1 results should help build investor confidence in achieving its goals.
Analysts optimistic about future growth
UBS analysts also commented that while some investors remain sceptical about the company’s ability to meet its second-half ramp requirements, they believe the anticipated growth is attainable, especially when considering the natural cost headwinds that will dissipate. They stated that the like-for-like ramp is not substantial and predicted that the strong Q1 results would help ease investor concerns.
Conclusion
Carl Zeiss Meditec shares soared after the company reported better-than-expected results for its fiscal first quarter. The company confirmed its guidance for the fiscal year, expecting further market growth despite uncertainties in the global landscape. Analysts remained optimistic about the company’s future prospects, believing that the solid Q1 performance would reassure investors of the company’s ability to meet its goals.
Analyst comment
Positive news: Carl Zeiss Meditec shares rise on strong Q1 results and reaffirmed guidance.
Analyst’s perspective: The strong Q1 results and reaffirmed guidance indicate that Carl Zeiss Meditec is on track for future growth. Investor concerns should ease, leading to continued market growth.
