Jenoptik Reports Strong Earnings But Delays 2025 Targets

Jenoptik announces higher earnings after tax and EPS, alongside modest revenue growth. However, the delay in 2025 targets and lower expected order intake could affect investor sentiment, as indicated in the report.

Date: 12-11-2024

AI Rating: 5

Jenoptik's report showcases several positive financial indicators for the first nine months of the year. The group earnings after tax increased to 66.8 million euros, up from 54.2 million euros in the prior year, suggesting a strong performance. Similarly, the earnings per share (EPS) improved to 1.15 euros, a notable rise from 0.94 euros previously. This increase in EPS can positively influence investor perception as it indicates greater profitability on a per-share basis.

The report also mentions that EBITDA reached 160.6 million euros, marking a 12.2 percent increase year-on-year, and an EBITDA margin improvement to 19.7 percent, compared to 18.6 percent. These figures reflect efficient operational management and can attract investors who are keen on strong operational metrics.

However, there are clouds on the horizon. The anticipated revenue growth for 2024 is expected in the mid-single-digit range, which is moderate and may not excite growth-oriented investors. Furthermore, the order intake for 2024 is expected to be slightly below last year's level, which could raise concerns about demand and future earnings stability.

In terms of future guidance, Jenoptik had originally set an ambitious target for 2025, aiming for around 1.2 billion euros in revenue and an EBITDA margin of 21 to 22 percent. However, these targets have now been pushed back to 2026, indicating slower growth than expected and further potential investor unease regarding the company’s momentum.

The President & CEO, Stefan Traeger, noted that the cyclical recovery in the semiconductor equipment industry is expected to occur later than previously anticipated. This acknowledgment might lead investors to reassess their expectations for the company's short-term performance in light of cyclical industry factors.

Stocks: JNPKF