Investing.com — posted a record third quarter, with revenue and profit tracking in line with recently upgraded full-year guidance.
Third-quarter revenue climbed 14% from a year earlier to £206 million, the company’s strongest quarter on record. For the first nine months, revenue grew 9.5% at actual exchange rates and 13.5% on a constant currency basis.
All three regions contributed to the nine-month revenue gain. The Americas and Asia-Pacific posted strong constant-currency growth, while EMEA staged a sharp recovery in the third quarter after a slow start to the year, swinging from a 5.5% decline at the half-year stage to growth for the full nine-month period.
The British precision engineering group said demand from semiconductor and electronics manufacturing, as well as aerospace and defence, remained robust during the quarter, driving a “substantial expansion of the order book in all three segments.”
“With RSW already confirming a strong 3Q with the trading update that accompanied an upgrade to guidance last month, the key question for this morning’s full 3Q release is what does the guidance imply about 4Q growth rates?” Jefferies analysts including David Farrell wrote.
Renishaw’s third-quarter revenue of £206 million implies the midpoint of full-year guidance assumes growth continues at a similar pace into the fourth quarter, pointing to an implied £218 million, the analysts continued.
The range of outcomes is wide, they added, with the bottom end of guidance implying 7% growth, or roughly £203 million, while the top end points to 22% growth and £233 million. Given Renishaw’s “positive commentary around order intake across all three divisions, an acceleration in revenue growth is certainly plausible,” they said.
The company said full-year performance remains in line with its recently upgraded guidance, targeting revenue of £775 million to £805 million and adjusted profit before tax of £145 million to £165 million.