By Nina Kienle
Shares of Carl Zeiss Meditec rose on Friday after the German medical technology company reported strong results for its fiscal first quarter. Despite investor skepticism, the company confirmed its guidance for the fiscal year.
At 1145 GMT, shares were up 4% at EUR110.20. This is a significant increase compared to approximately EUR132.00 at the same time last year.
For the quarter ended December 31, the company reported revenue of 475 million euros ($512 million), a 1% increase compared to the prior year (3.3% adjusted for currency effects). However, adjusted earnings before interest and taxes saw a significant decline of 27% to EUR46 million.
In a note to investors, UBS analysts expressed that the results exceeded their expectations. They had originally forecasted revenue of EUR455 million and adjusted EBIT of EUR32 million.
Despite geopolitical uncertainties and a challenging macroeconomic environment, Carl Zeiss Meditec remains optimistic about the market growth. The company expects its revenue to align with anticipated market growth, and EBIT to be around EUR348.1 million, which was the previous year’s level.
While some investors are skeptical about achieving these goals, UBS analysts believe that the company’s strong performance should help build confidence. They also noted that the projected ramp-up in the second half of the fiscal year is not particularly steep, especially when considering the potential cost headwinds that will naturally fall away.
