November 2nd, 2023 | 07:10 CET
These companies defy the crisis - TeamViewer, Smartbroker Holding AG, JinkoSolar
Table of contents:
TeamViewer - Better margins and double-digit growth
Solid figures, despite a challenging market environment, were reported by the leading remote platform provider for the third quarter of fiscal 2023, with revenues increasing by 10% and reaching EUR 158.1 million. Adjusted earnings before interest, taxes, depreciation and amortization totaled EUR 70.3 million, up 19% from the third quarter of 2022. The Company exceeded analysts' expectations here, which assumed EUR 61 million. EBITDA margin increased from 41% to a high 44% thanks to consistent cost control and favorable currency and timing factors. The operating margin reached 43% after nine months, also above the target of 40%.
Although the Company made progress in terms of profit growth, with profit rising from EUR 16.48 million to EUR 26.54 million, representing an increase in earnings per share from EUR 0.09 to EUR 0.16, it remained below analysts' expectations. They had expected a higher net result of EUR 30 million and earnings per share of EUR 0.18.
TeamViewer maintains its full-year guidance based on the successful third quarter. Revenue growth of 10% to 14% is expected, ranging between EUR 620 million and EUR 645 million. The adjusted EBITDA margin is expected to reach the 40% threshold, compared to 41% in the previous year. CEO Oliver Steil, whose contract was recently extended until 2028, emphasized that the Company's main objectives remain to increase profitability.
Following the publication of the preliminary figures, the US investment bank Goldman Sachs commented and reiterated its price target of EUR 24.50 and the investment rating "buy". Thus, the EBITDA is above expectations, but the billings were weaker than forecast.
Smartbroker Holding AG - Important hurdle crossed
Until last Sunday, the telephone lines in Berlin-Kreuzberg, where Smartbroker Holding AG has its headquarters, must have been ringing off the hook. Until then, the hot phase ran with the migration of the existing customers from the old to the new, innovative Smartbroker+ platform. As can be heard from company circles, this effort has paid off. The Company plans to announce more details in mid-November.
The decision to switch to a completely revamped platform with new features makes perfect sense from our perspective. In addition to the expanded trading tools, users will have access to a smartphone app and a wider range of investment opportunities and trading venues at attractive and consistent terms. For example, the expanded range of ETF savings plans and trading on foreign exchanges was recently activated. In the coming months, the range of services will be further expanded with the introduction of cryptocurrency trading and a securities loan offer.
The long-term vision of Smartbroker management is to leverage synergies between the media business, which has been successfully operated for 25 years, and online brokerage. On the one hand, the aim is to integrate content from the existing portals into Smartbroker+. On the other hand, customers will be able to place their securities orders directly from the four existing portals wallstreet-online.de, ariva.de, boersennews.de and finanznachrichten.de. The Company intends to advance with this integration in the second half of next year at the latest.
Despite the pleasing development, the Smartbroker Holding AG share is in consolidation after an annual high of EUR 13.00 in August. It has since fallen back to the breakout level at around EUR 9.00. We are eagerly awaiting the next news regarding the migration of existing customers. Should these be positive, little should stand in the way of the next upward movement.
JinkoSolar - The solar industry sends a sign of life
It might have been an important sign for the start of a rebound. After hitting a new low for the year, JinkoSolar's stock broke free significantly, with a price jump of more than 10% to USD 32.40. Seven analysts surveyed on Reuters Refinitv believe the solar company could hit the big time and have set an average price target of USD 52.20 for the stock.
In the first nine months, the Chinese company delivered a total output of 22.597 gigawatts, an increase of 108.2% compared to the same period last year. Compared to the second quarter, JinkoSolar increased total output by 21.4%. Revenues climbed 63.1% to USD 4.36 billion compared to the third quarter of 2022. A significant boost to 19.3% was also achieved in gross margin. In the first nine months of the previous year, this was still at 15.6%. Net income moved to USD 181.4 billion, corresponding to earnings per share of USD 2.53.
With the solid third quarter, management now expects total output to be between 70 to 75 gigawatts for the full year 2023.
Despite the challenging environment, several companies are able to defy the crisis. TeamViewer significantly increased its gross margin. JinkoSolar raised its full-year guidance on the back of a solid third quarter. Smartbroker Holding AG has significant rebound potential due to the successful migration of existing customers.
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