VWDRY - Vestas sees 2022 revenues below guidance warns of more weakness this year

Vestas Wind Systems ( OTCPK:VWDRY ) trades lower in Europe after warning Friday that it expects FY 2022 revenue will come in below previous guidance due to project delays and impairments taken in Q4, while anticipating lower activity levels this year.

The Danish wind-turbine maker pre-announced full-year results with revenues of €14.49B (~$15.7B) compared with prior guidance of €14.5B-€15.5B, with EBIT margin before special items of negative 8% vs. guidance of negative 5%.

For 2023, Vestas ( OTCPK:VWDRY ) forecasts full-year revenues of €14B-€15.5B with EBIT margin before special items between negative 2% and positive 3%.

The company said it expects high inflation throughout the supply chain and reduced wind power installations will hurt revenues and profitability, with the lower level of installations caused by slow permitting processes in Europe and lower activity in the U.S. due to a steep ramp-up ahead of a busy 2024 driven by the Inflation Reduction Act.

Vestas ( OTCPK:VWDRY ) is "hard to pass by" given that new energy is focusing on offshore wind, Keith Williams writes in an analysis published recently on Seeking Alpha .

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