Atos Shares Tumble After Guidance Cut
July 12 2021 - 4:25AM
Dow Jones News
By Cecilia Butini
Shares in Atos SE traded sharply lower in early trading on
Monday after the French IT company cut its 2021 financial targets
on negative growth in the second quarter.
At 0855 GMT, Atos traded 14.9% lower at EUR45.00.
The company set a new operating margin target of about 6%, down
from a previous margin range of between 9.4% and 9.8%, it said.
Atos is facing an accelerated decline in its legacy
infrastructure business, Bryan Garnier analysts said, as the
company said it expects flat revenue in the second quarter and that
it sees this business shift persisting in the second half.
Free cash flow is expected at negative 364 million euros
(negative $432.4 million) in the first half, versus negative EUR172
million in the same period in 2020. Free cash flow is being
affected by a reduction in cash in advance from customers, Bryan
Garnier said, adding that the company has decided to reduce cash in
advance from customers moving forward.
Nevertheless, Atos reiterated its medium-term targets, based on
intense transformation and expanding its focus on digital, cloud,
security and decarbonization, analysts said.
Atos said it expects to improve on all its key performance
indicators in 2022 and backed its medium-term targets for revenue
growth in the range of 5% to 7% at constant currencies, operating
margin of 11% to 12% and free cash flow conversion above 60%.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
July 12, 2021 04:19 ET (08:19 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Atos (EU:ATO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Atos (EU:ATO)
Historical Stock Chart
From Apr 2023 to Apr 2024