Alstom's Rollercoaster Ride: Soaring Sales, Plummeting Stocks
Temporarily halting investments in Alstom.
Grab a Cuppa, This Might Take a Sec! Alstom, the slick train manufacturer, has given investors a rollercoaster ride. Their stocks are plummeting, but don't let the drop fool you! Revenue and orders are up, way up. But, the cash flow projection for the year trails behind analysts' wildly optimistic expectations.
The Lowdown on Those Stocks Fresh off the press, Alstom's shares have nose-dived by a whopping 17%, hitting a low not seen in five weeks. The free cash flow for the current fiscal year? A paltry 200-400 million euros, a far cry from the analysts' anticipation of a whopping 551 million euros.
But wait, there's more! The company's announcing profits again, for real this time. They posted a net profit of 149 million euros, a stark contrast to the net loss of 309 million euros in the previous year. Sales and orders? Up by 4.9% and 4.7% respectively, reaching 18.5 billion euros and nearly 19.9 billion euros.
The Numbers Game The adjusted operating result (EBIT), their key performance indicator, saw a 18% jump to 1.2 billion euros, resulting in a respectable 6.4% margin. However, it fell slightly short of analysts' expectations.
Behind the Scenes Alstom credits its improved performance to increased sales of rolling stock. The company's performing magnificently in France, Italy, South Africa, Belgium, and the US. They even unveiled plans to invest in France and create at least 1,000 new jobs in April.
Adding It Up In the last fiscal year, Alstom benefited from a significant reduction in non-operating expenses. For the current fiscal year, Alstom anticipates organic revenue growth of 3-5% and an adjusted EBIT margin of around 7%.
The Long Game Alstom's ultimate goal is to achieve a 7% adjusted operating margin by March 2026. With a steadily growing global rail transport market, the future looks bright for Alstom, but only time will tell if their ambitious plans will pay off.
Sources: ntv.de, jwu/rts/DJ
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- Despite the steep 17% drop in Alstom's stock prices, the company's employment policy and community policy remain committed, as they announced plans to invest in France and create 1,000 new jobs in April.
- Alstom's financial future, however, remains uncertain as the company's cash flow projection for the year trails behind analysts' expectations, making investors reconsider their employment policy and stock-market investments.
