Vestas stock rises on strong Q2 results

Investing.com -- Shares of Vestas Wind Systems A/S (CSE:VWS ) rose following the release of its second-quarter results, which largely met expectations.

“Good delivery on pricing and order intake, though lower turbine deliveries behind the sales and EBIT miss,” said analysts from RBC Capital in a note. 

“Order intake came in at 3,596MW, up 54% yoy, and in line with cons at 3,591MW, driven by strong activity in EMEA and APAC,” as per Jefferies. Additionally, the equipment business returned to profitability.

Although the service business reported a loss due to adjustments to planned costs, Vestas narrowed its full-year outlook for revenues and EBIT margins. The company expects a stronger second half, with revenue growth of 17-29% year-on-year and an improved EBIT margin.

As per analysts at UBS Global Research, Vestas' order intake of 3.6GW was in line with expectations, but pricing came in ahead, leading to a 15% beat on order intake in euro terms.

Despite the weaker-than-expected overall performance, Vestas reaffirmed its full-year outlook, which implies a significant ramp-up in H2 deliveries and further margin improvement in the Power Solutions segment. 

The company's strong order book and pricing environment provide a positive outlook for the remainder of the year.

Source: Investing.com