October 4, 2022

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Autostore's share in the stock market drops significantly after record sales

Autostore’s share in the stock market drops significantly after record sales

He broke into the Oslo auto shop Borz last fall. The robotics warehouse company was priced at NOK 100 billion, and was the largest listing since Statoil in 2001.

Autostore achieved, in its third financial report as a listed company, an adjusted operating profit of $66.7 million in the second quarter, compared to an expected $56 million, and compared to $40.4 million for the same period last year, according to the company’s quarterly report. The company has not previously reported higher revenues.

After the opening day of trading in Oslo Bors, Autostore’s stock rose 12.8 percent. Since then, the mood has shifted to a roughly 5 percent drop in Autostore’s share.

Autostore director Karl-Johan Lehr was able to show in May that the quarterly figures for the first three months of the year are much larger than they were in Same period last year.

In the second quarter of the year, the company performed better. The trading value closed at 165.6 million dollars in the second quarter, compared to 85.5 million dollars in the same period of the previous year. Trading volume was $142 million expected.

Autostore continued to grow strongly in the second quarter, with revenue up 93.6 percent from the second quarter of last year. Strong second-quarter demand raised the reserve to 66.1 percent, which supports full-year revenue guidance and continued growth in 2023, Lear wrote in a report today in its letter to shareholders.

Autostor made an adjusted profit before tax of 69.5 million dollars in the second quarter of 2022, compared to 42.7 million crowns in the same period the previous year. Up front, a pre-tax profit of $62 million was expected, according to company estimates brought in.

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Overall, the second quarter ended with good results for Autostore, Lier says while presenting the company’s results for the second quarter, which was held at Høyres Hus in Oslo.

Autostore has revenue guidance of $550 million to $600 million for the full year of 2022, and according to the company, it’s on track to meet that goal. For 2023, revenue ambitions are between $700 million and $800 million.

“There is no consensus number available here, but given the stock’s recent poor performance and overall overall uncertainty, we believe it is above market expectations,” Pareto wrote in a letter after the numbers were presented.

Overall, a comfortable quarterly report, and we expect to follow up on minor revisions. Barreto analyst Karl-Juergen Flynn says in the report that the stock should rise today.

historical levels

Fluctuations in the global macroeconomics did not help Rogaland. When the company released its quarterly results in May, it reported supply chain issues that could affect earnings. Autostore management thought this would be a short-term concern, and then expected margins to recover at the end of the year. The company said in a May report that price increases and temporary aluminum supplements will secure its revenue target this year.

Ongoing supply chain challenges and increased cost growth are expected to further impact margins in the second half of 2022, the company wrote in its second quarter report.

The company has already implemented several measures, including implementing price increases and temporary surcharges for aluminum.

“We expect to raise margins toward historical levels, albeit with a somewhat late effect until 2023, as projects with more favorable cost and price levels move from the order book to income generated,” CEO Lear wrote in the report.

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Moreover, it states that the full effect of the measures will appear in 2023, when projects with better cost and price levels will turn into realized income.

Too risky

Last week, Sparebank 1 Markets called for the stock to be sold, and set a target price of NOK 14. The stock price this week remained near NOK 15 and 16.

Sparebank Markets 1 wrote in its analysis that there are good prospects for income growth, but with purchase orders flattening and strong pressure on margins, Sparebank 1 Markets considers the outlook for 2024 too risky.

We expect the pressure to continue in the short term due to the rise in metal prices, the rise in energy prices, the increase in the number of workers and the increase in wages. We expect an improvement in 2023, due to the implementation of price increases, but we highlight the long-term downside risks, Sparebank 1 Markets believes.

Analysts further write that they are seeing signs that an increase in order intake during 2021 may be followed by a weak period with the potential for a lower order reserve.

The main reason for our more cautious stance is the recent development with several profit warnings from global retailers driven by shifting consumer sentiment, cost growth and pressure on margins combined with elevated inventory levels and uncertain prospects, writes Sparebank 1 Markets.

Moreover, it states that e-commerce market share will lose at the top as consumers choose to move away from online shopping in favor of in-store sales.

“While we strongly believe in Autostore’s long-term growth drivers, we believe the immediate response from merchants will be to cut costs, delay and reassess new investments and generally avoid large cash outlays,” Sparebank 1 Markets believes.

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70 billion evaporated

It’s only been ten months since the stock exchange party in October last year, but the price euphoria has already been felt this winter and this spring. Disputes over patents It dominated the news and was a source of concern among investors. In addition, this has led to certain concerns about the wholesale sale of shares held by the largest shareholder, Japan Soft Store. With financial experience.

The stock market hasn’t been kind to Autostore after the short-lived rally at the end of last year. This week, the stock traded at prices 55 and 60 percent lower than the price the stock was priced at on New Years Eve. Prior to Thursday’s Autostore report, NOK 70 billion had been cut from shareholder values.

Measured in kr and kr, this means Autostore is the Oslo stock exchange where most of the billions of dollars have been smoked. On New Year’s Eve, the company’s shares were collectively priced at more than NOK 123 billion. After the exchange closed on Wednesday, the remaining exchange values ​​were just under 52 billion. After a brief rally Thursday morning, the price continued to fall.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using the links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.