Pirelli Second Quarter 20% Ahead of Analysts’ Consensus
Financial analysts have described Pirelli Spa’s second quarter 2010 results as a “symbolic quarter” after the group, led by its tyre sales, posted results roughly 20 per cent ahead of analysts expectations and unexpectedly increased its 2010 earnings targets. The group increased its sales targets to 4.8 – 4.9 billion euros (from 4.6-4.7 billion) and is targeting EBIT margins 7 per cent versus 6.5 per cent previously.
That said, according to an investors note published by Morgan Stanley analyst Edoardo Spina this morning (30 July 2010), the figures are “probably not enough to impress” the stock markets, but are better than peers: “Recent second quarter results of auto companies show that expectations across the space are high, and small beats are not enough to lift share prices.” As a results Pirelli’s second quarter results don’t “stand out as extraordinarily impressive overall,” says Spina, but the upgrade in guidance was not expected could lead to a positive “short-term reaction of the share price.”
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