1Q 2017 results: in-line
Reported 1Q17 results will cause no surprises. Although sales came slightly below expectations, this was compensated by higher margins (the EBITDA margin was 22.4%, up from 20.1% a year ago) that underpinned earnings. The results are in-line with our estimates and the consensus. Sales declined –19% to €121mn (€134mn BKTSe), gross profit was flat (–1%) at €65mn and we believe this reflects a higher weight of maintenance in the sales mix (the sales breakdown was not given), EBITDA €27mn (–10%), EBIT €22mn (–12%), PBT €20mn (–14%), Net group profit €16mn (–14%).We see the results as supportive of our positive stance on Talgo and leave our Buy recommendation and target price of €5.88 unchanged.
Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.
Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.