Hexagon sticks to targets despite difficult first quarter
Industrial technology company Hexagon, which is at the forefront of the market for a range of productivity-increasing measurement tools, reported first quarter earnings last week.
Despite posting a significant rise in earnings, the numbers missed analysts’ expectations, and the company’s share price dropped as a result. However, Hexagon has been an outperformer over the year so far, and even taking last week’s drop into account, its share price is still 8% up for the year to date.
Hexagon’s share price took a hit last week, but its year-to-date movement remains positive
Source: Yahoo Finance
Hexagon said that adjusted earnings for the quarter came in at €198.3 million, missing analysts’ expectations of €200 million, but still logging a 12% rise year on year. Likewise, while organic sales rose by 7% against the previous year, the Street wanted to see an 8% rise.
The company was pretty clear about what caused this earnings miss, citing “currency headwinds and a still challenging oil and gas market.” It also said that a decline in the UK and North American manufacturing markets pushed its performance down. CE Ola Rollén said that the oil and gas markets were beginning to show signs of “further stabilization” and that “our strategy remains unchanged.”
Hexagon also maintained its targets of annual sales of €4.6 billion to €5.1 billion by the end of 2021, with an operating margin of 27% to 28%.
Dominion holds Hexagon in its Global Trends Managed Fund.
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