Stock Analysis

Nexans Full Year 2023 Earnings: Misses Expectations

Simply Wall St

March 28, 2024

Nexans (EPA:NEX) Full Year 2023 Results

Key Financial Results

Revenue: €7.79b (down 6.9% from FY 2022).
Net income: €221.0m (down 9.8% from FY 2022).
Profit margin: 2.8% (down from 2.9% in FY 2022). The decrease in margin was driven by lower revenue.
EPS: €5.07 (down from €5.63 in FY 2022).

revenue-and-expenses-breakdown — ENXTPA:NEX Revenue and Expenses Breakdown March 28th 2024

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

Nexans Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 10%.

The primary driver behind last 12 months revenue was the Usages segment contributing a total revenue of €2.21b (28% of total revenue). Notably, cost of sales worth €6.80b amounted to 87% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €479.0m (62% of total expenses). Explore how NEX's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 6.5% p.a. on average during the next 2 years, while revenues in the Electrical industry in France are expected to grow by 5.7%.

Performance of the French Electrical industry.

The company's shares are down 1.4% from a week ago.

Risk Analysis

Be aware that Nexans is showing 1 warning sign in our investment analysis that you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.