Kontron Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

Kontron (ETR:SANT) Full Year 2023 Results

Key Financial Results

• Revenue: €1.25b (up 15% from FY 2022).
• Net income: €75.3m (up from €12.3m loss in FY 2022).
• Profit margin: 6.0% (up from net loss in FY 2022). The move to profitability was driven by higher revenue.
• EPS: €1.19 (up from €0.19 loss in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Kontron EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 3.3%.

The primary driver behind last 12 months revenue was the Europe segment contributing a total revenue of €912.8m (73% of total revenue). Notably, cost of sales worth €759.7m amounted to 61% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €293.9m (70% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of €3.67m. Explore how SANT's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the IT industry in Germany.

Performance of the German IT industry.

The company's shares are down 5.7% from a week ago.

Valuation

Kontron's financial results now indicate the company's shares could present an opportunity based on 6 important indicators. You can access our in-depth analysis and discover what the outlook is like for the stock by clicking here.

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