Aubay - Profit warning and slowdown in business already widely priced
Q3 growth in line with Q2 and in line with our expectationsGreater caution for Q4, leading to a downward revision of the full-year sales guidance (€530-540m vs. €540-550m), which we had already included in our forecastsThe EBIT margin (before share-based payment) guidance has also been lowered (8-9% vs. 9.5-10.5%), a sharper revision than we had anticipated.The other major piece of information is the downsizing of the workforce, which will enable the productivity rate to rise, but will result in zero on-board growth for 2024E.We have lowered our EBIT forecasts by -6% for 2023 and -10% for 2024E.Buy opinion maintained, withAubay SA is a France-based company engaged in the Information Technology (IT) industry. The Company designs architecture of information systems, develops and facilitates content management, designs and develops secured IT networks, offers consulting on telecommunication strategies, provides network engineering, handles engineering projects and outsourced research. It also develops projects and offers facilities management solutions, among others. The Company's products are sold to the sectors of defense, aeronautics, energy, banking, insurance telecommunications, as well as transport and rail sectors. It has developed two service centers: The Dedicated Service Centre includes the technical platform, the premises and all the resources that are dedicated to a single customer; the Pooled Services Centre, which covers the resources, tools and processes pooled for a group of customers. It has such subsidiaries as Aedian SA and Aubay SA, Norma 4 Servicios Informaticos SA, among others.
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