Investing.com — Shares of Friedrich Vorwerk (ETR:) jumped on Monday, buoyed by a guidance upgrade following its third-quarter results.
At 6:44 am (1044 GMT), Friedrich Vorwerk was trading 5.3% higher at €27.70.
The company reported a remarkable 32% year-over-year growth in sales for the third quarter, accompanied by an improvement in EBITDA margins.
Analysts at Jefferies noted that the EBITDA margin climbed by 11 percentage points year-on-year, reaching 17.5%.
“The rebound in profitability has mainly to do with the reduced use of subcontractors and the phase out of margin dilutive legacy projects,” Jefferies said in a note.
This strong recovery prompted the company to revise its full-year forecast upward, raising sales expectations to between €430 million and €460 million, a notable increase from the previous target of more than €410 million.
The upgraded forecast also includes an increase in expected EBITDA margins, which are now projected to be between 14% and 15%, compared to the earlier guidance of around 13%.
As a result, the mid-point EBITDA estimate stands at €64.5 million, a 20% increase over market consensus estimates.