How and why Leonardo stands out on the stock market
Leonardo still in evidence in Piazza Affari after the forecasts on orders, revenues and Ebita 2021
In a session marked by declines for Piazza Affari (-0.7% the Ftse Mib), Leonardo stands out positively.
The title of the defense and aerospace group is on the rise in the main basket (+ 2.84%), reports Radiocor , the agency of Il Sole 24 Ore.
Shares benefited from the fact that yesterday, in closed markets, the company led by Alessandro Profumo communicated the forecast for the closure of 2021 with orders, revenues and Ebita in the upper part of the guidance with a free operating cash-flow of approximately 200 million. euros, about double the original estimates.
Further details will come with the presentation of the 2021 results, scheduled for March 10, when the guidance for the current year will be provided.
All the details.
THE FORECASTS OF THE BOARD OF LEONARDO FOR 2021
More specifically, the BoD completed the preliminary analysis of the expected performance in 2021, highlighting "an excellent performance during the year". This was reported by a note from the group. Leonardo expects to close the year with Orders, Revenues and Ebita in the upper part of the Guidance with a FOCF (Free Operating Cash-Flow) of approximately 200 million euros, approximately double compared to the original Guidance.
The group led by Profumo had indicated around 14 billion euros for orders in 2021; a range between 13.8 and 14.3 billion for revenues and between 1.075 and 1.125 billion for ebitda.
Already in December, to those who asked how 2021 will end from a financial point of view for the company, Profumo replied: "We have the guidance, the guidelines we have given to the market, I can only confirm that we will respect these guidelines".
Not only respected, but also beyond expectations.
MERIT OF MILITARY BUSINESS AND MORE
And this, according to the former Finmeccanica company, is due to “the excellent performance of the military / government business, the lower cash absorption in the aerostructures and the efficiency actions across the group”.
As Citi experts pointed out in December, the delivery and payment of the first two Eurofighter Typhoons to Kuwait could make the guidance on fiscal 2021 easier to achieve.
HOW ARE AEROSTRUCTURES
In fact, the Aerostructures division in the first nine months of 2021 recorded orders for 299 million euros (approximately 15% of the total of the Aviation division, -33.4% year on year); a backlog of 1,075 million (approximately 10% of the total of the Aviation division, -9.2% year on year); revenues of 405 million (16% of the total of the Aviation division, -35.7% year on year) and a negative EBIT of 125 million (-166% year on year). In other words, "the greatest negative impact on Leonardo's overall profitability" had specified Bestinver taken up by MF .
However, Leonardo is working on the relaunch of its Aerostructures division, with an investment plan of 300 million euros. In addition, the group plans to further diversify its production and reduce the negative impact on the division's profitability. Just the day before yesterday, confirmation came that Leonardo could make components for the Eurodrone in some of its factories in southern Italy. “In Puglia it provides for the implementation of all processes relating to wing technology, with manufacturing in Foggia and assembly in Grottaglie” Il Sole 24 Ore highlighted.
THE COMMENT OF EQUITA
"The indications are slightly better than both our resources (orders 14 billion euros, turnover 14.14 billion and Ebita 1.08 billion) and those of consensus (orders 14 billion, turnover 14.12 billion, Ebita 1.1 billion ) which are more around the midpoint ”, underline Equita analysts.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-e-perche-leonardo-spicca-in-borsa/ on Fri, 28 Jan 2022 11:11:03 +0000.