Holcim reports in-line Q3 results, maintains guidance; shares up

Investing.com -- Holcim (SIX:HOLN ) shares climbed 2% Friday after the Swiss building materials supplier reported Q3 operating profit above analyst expectations, as improved profitability helped to counteract a decline in sales.

Holcim, which is set to spin off its North American operations next year, posted a recurring operating profit of 1.67 billion Swiss francs ($1.93 billion) for the third quarter, slightly above analyst estimates of 1.65 billion francs based on company consensus.

Higher profit margins, which rose to 23.5% from 21.8% the previous year, supported this result.

Holcim’s increased focus on selling more of its higher-margin products, including low-carbon cement, roofing, and other building materials, helped offset a 3% decline in revenue to 7.12 billion francs, below expectations of 7.19 billion francs.

“Our Q3 results confirm Holcim's strong earnings profile, with broad-based growth drivers delivering record recurring EBIT and a record margin,” CEO Miljan Gutovic said in a statement.

Holcim reaffirmed its full-year outlook, aiming for low single-digit growth in sales in local currencies and a higher growth rate in recurring operating profit.

“All-in-all these results feel like a tick in the box with limited impact to FY24 consensus or the underlying investment case,” Jefferies analysts commented.

Citi analysts shared a similar sentiment, saying the Q3 print was broadly in line with expectations “and hence we do not see meaningful changes to consensus earnings estimates on the basis of these results.”

Source: Investing.com