- (PLX AI) - Siemens Gamesa shares crashed 16% in early trading after the company last night cut its full-year guidance significantly.
- • Siemens Gamesa Group revenue for financial year 2021 is now expected to be at the low end of the range of EUR 10.2-10.5 billion
- • Siemens Gamesa EBIT margin pre PPA and before I&R costs for 2021 is adjusted to a range of -1% to 0%
- • Q3 revenue EUR 2,700 million missed consensus estimates of EUR 2,860 million
- • The company was hit by provisions for onerous projects impacted by raw materials and increased estimates of ramp up costs for the Siemens Gamesa 5X platform
- • The updated FY guidance implies a 4Q EBIT loss of EUR 186 million, which implies a significant impact from raw materials of the order of EUR 350 million, analysts at Bank of America said
- • BofA cut its price target for Siemens Gamesa to EUR 31 from EUR 38, but maintained a buy rating because of the company's offshore exposure
- • Peers Vestas and Nordex fell 7% and 6.5%, respectively