VWSYF - Vestas rallies after swinging to Q1 profit backing full-year guidance

2023-05-10 11:31:52 ET

Vestas Wind Systems ( OTCPK:VWDRY ) shares jumped nearly 4% in Copenhagen on Wednesday after reporting a surprise Q1 profit and maintaining its full-year guidance despite a tough backdrop for the wind turbine industry.

In its Q1 , Vestas ( OTCPK:VWDRY ) swung to a net profit of €16B (~$17.5B) from a net loss of €765M in the year-earlier quarter, while analyst consensus had anticipated a net loss of €54M.

Q1 EBIT swung to €40M from a €329M loss a year ago and a 70M loss in a poll compiled by the company, resulting in an EBIT margin before special items of 1.4% compared to negative 13.2% in Q1 2022.

Q1 revenues rose 14% Y/Y to €2.83B, above €2.62B consensus, wind turbine order intake in the quarter totaled 3.3 GW with an average selling price of €0.89M/MW, while the value of total wind turbine and service order backlog rose to €50.7B at the end of Q1, up €1.8B from a year ago.

Vestas ( OTCPK:VWDRY ) maintained its full-year guidance for revenues of €14B-€15.5B.

"The wind industry remains challenged by political uncertainty, slow permitting processes and high inflation, which we expect to continue throughout 2023," CEO Henrik Andersen said.

More on Vestas Wind Systems:

• See financial and valuation comparisons to sector peers
• SA analysis: Breakthrough On Turbine Recycling And Japanese Offshore Developments
• Stock price return: Up 4% YTD, up 36% in the past 12 months

For further details see: