Sartorius shares surge after reaffirming full-year guidance

Investing.com — Shares of Sartorius saw a jump after the company reaffirmed its full-year guidance.

At 4:36 am (0836 GMT), Sartorius was trading 13.4% higher at €200.40.

“SRT reiterated 2024 guidance which we expect to reassure given setbacks YTD,” said analysts at Jefferies in a note.

 Despite facing challenges in a turbulent market and reporting a slight drop in sales revenue of 2.0% over the first nine months of 2024, the company maintained a positive outlook. 

Order intake rose by 6.6%, a clear signal that demand is strengthening, especially in the consumables sector. 

This uptick in orders reflects growing customer interest, particularly as many have moved beyond inventory reduction phases, creating renewed demand.

The company has faced headwinds, particularly in its Lab Products & Services division, where weak end markets and customer reluctance to invest, especially in China, have weighed on performance. 

“Other than a weak China market and general ‘reluctance to invest’ by customers (unch), there was little further detail. Geographically, the US outperformed our expectations, EMEA was in line, and Asia-Pacific underperformed,” said analysts at RBC Capital Markets in a note.

Yet, despite these pressures, Sartorius’ profitability remained robust. Its underlying EBITDA margin reached 27.7%, slightly down from the previous year but still strong. 

This coupled with expectations of further efficiency gains, has strengthened market sentiment.

The company expects sales revenue to hover around the prior year’s levels, and it has projected an underlying EBITDA margin between 27% and 29% for the year. 

“Following the very volatile development caused by the pandemic, the business situation has stabilized, and we are on track to achieve our full-year guidance,” said Sartorius’ chief executive, Joachim Kreuzburg.