UPDATE 2-Fluidra shares in Spain tumble after earnings beat expectations
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BARCELONA, October 28 (Reuters) – Shares of Spain’s Fluidra, the world’s largest pool equipment maker, fell on Thursday as nine-month net profit fell short of expectations despite nearly tripling by compared to the previous year.
Net profit stood at 221 million euros ($ 257 million) – a result CM Capital Markets called below consensus expectations.
Fluidra stock was down 5.5% to 34.65 euros in morning trading. Nevertheless, it is the second best performing stock in the Spanish Ibex-35 blue chip index this year, with a gain of 75%.
The company has also raised its outlook, the fourth time it has raised its forecast this year.
With January-September sales surging 49% to 1.7 billion euros on residential demand and the North American market, Fluidra now expects annual sales to rise 40% to 45% against a estimate of 37% to 42% in September.
He maintained an earlier estimate of earnings per share rising 83% to 93%.
Noting that early October data was positive, the Barcelona-based company predicted “strong” fourth-quarter earnings despite global supply chain tensions and rising prices.
The company benefited from the pandemic-induced closures which prompted many upper middle class people to install swimming pools because they could not travel during the summer.
“The company’s fundamentals remain solid and the positive momentum continues thanks to strong demand for new constructions (swimming pools), the takeover of a commercial pool and mergers and acquisitions … We are ready for a solid start to 2022” , said Fluidra Executive Chairman Eloi Planes. A declaration.
The company’s net debt increased 60% from a year ago to 933 million euros due to acquisitions. In September, it announced a $ 240 million purchase from US firm SR Smith.
$ 1 = 0.8618 euros Report by Joan Faus; Additional reporting by Inti Landauro, Tomas Cobos and Joanna Jonczyk-Gwizdala; Editing by Edwina Gibbs