• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Atos shares rise after Q3 results meet expectations, outlook reaffirmed

by October 24, 2024
written by October 24, 2024

Investing.com — Shares of Atos (EPA:ATOS) rose on Thursday following the company’s third-quarter results, which were broadly in line with market expectations. 

At 8:47 am (1247 GMT), Atos was trading 1.7% higher. 

Atos’s revenue for the quarter amounted to €2,305 million, slightly falling short of Morgan Stanley’s estimates but exceeding consensus predictions by 1%. This was marked by a reported organic growth decline of 4.4% year-over-year.

The company’s segment breakdown showed mixed results. Eviden, Atos’s digital services division, generated €1,093 million in revenue, reflecting a steeper organic decline of 6.4%. 

This segment faced challenges primarily due to a slowdown in the Americas and Central Europe, as well as reductions in contract scopes.

In contrast, Atos’s Tech Foundations segment reported revenue of €1,212 million, down 2.6% organically, indicating a more stable performance in comparison.

Despite these declines, Atos reaffirmed its financial outlook for fiscal year 2024, expecting results to align with the business plan released in early September. 

The company expects an organic revenue decrease in the mid-single-digit percentage range, translating to expected revenues of €9.7 billion for the year. 

Additionally, operating margins are projected at about €238 million, excluding further provisions related to underperforming contracts. 

Atos reported a net debt of €4.6 billion at the end of the third quarter, flagging a reduction of €1.6 billion in working capital since December 2023.

The company also reported a decrease in order entry, which stood at €1.5 billion for the quarter, resulting in a book-to-bill ratio of 0.66, down from 0.84 in the previous year. 

This trend reflects a cautious market environment, although the company remains focused on its strategic restructuring efforts.

Atos is currently awaiting a decision from the court regarding its pre-arranged financial restructuring plan, with closure expected by late December 2024 or early January 2025. 

Morgan Stanley analysts see potential upside risks related to the rapid restructuring of Tech Foundations and a quicker turnaround of business operations. 

However, there are lingering concerns about high uncertainty surrounding free cash flow in the coming years and the liabilities that could impact the company’s financial health, even after the anticipated debt-to-equity swap.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Bunzl reports growth and steady acquisitions
next post
Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.13%

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • U.S. housing market to improve in 2025, but challenges persist
    • Analysis-Behind a potential Honda and Nissan tie-up, the existential threat posed by Chinese EVs

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy