Carl Zeiss Meditec Forecasts Positive Revenue Growth for the Fiscal Year ahead
Carl Zeiss Meditec, a Germany-based medical-technology company, has projected a positive outlook for the fiscal year ahead, leading to a rise in its share prices. According to the company's forecast, it expects to witness revenue growth in the mid single-digit percentage range, aligning with industry standards for the year ending September 2024. Additionally, it anticipates earnings before interest and taxes to be on par with the fiscal 2023 results.
This encouraging forecast has instilled confidence in the market and has been well received by investors. UBS analysts suggest that the company's outlook is promising, considering the initial apprehensions surrounding its shares.
While Carl Zeiss Meditec experienced higher revenue during fiscal 2023, its net profit declined due to an unfavorable product mix with a lower percentage of recurring revenue. The net profit for that year was 292.0 million euros ($314.4 million), a decrease from EUR295.9 million the previous year. However, revenue saw a 10% increase to EUR2.09 billion. The company attributes a slight deviation from the target value to unfavorable exchange rates between the US dollar, Chinese yuan, and the euro.
The company's EBIT (earnings before interest and taxes) also witnessed a decline from EUR396.9 million to EUR348.1 million, causing the EBIT margin to contract from 20.9% to 16.7%. Although this result fell slightly below the lower end of the forecasted range of 17% to 20%, it is important to note that the prior year's exceptional performance was influenced by high deliveries of pandemic-related supplies to the Chinese sales channel.
Overall, Carl Zeiss Meditec remains optimistic about its future performance, with expectations of steady revenue growth and stable earnings for the upcoming fiscal year.
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