VWDRY - Vestas Wind cuts full-year guidance but shares fly higher

Vestas Wind Systems ( OTCPK:VWDRY ) shares gain more than 4% in Europe on Wednesday despite reporting a larger than expected Q3 net loss and cutting its full-year outlook due to continued cost inflation and supply chain instability.

The wind turbine maker swung to a Q3 net loss of €147M ($145.1M) from a profit of €115M a year earlier, as revenue fell 29% Y/Y to €3.91B; a company compiled consensus had indicated a net loss of €34M on revenues of €4.54B.

Q3 order intake fell to €2B from €3B, while the total turbine and service order backlog rose to €50.9B from €47.3B, the company said.

For FY 2022, Vestas ( OTCPK:VWDRY ) cut guidance for EBIT margin to negative 5% from previously between minus 5% and flat, and now sees full-year revenues of €14.5B-€15.5B, down from its earlier forecast of €14.5B-€16B.

The company also expects total investments for the year of €850M, after previously forecasting €1B.

Vestas ( OTCPK:VWDRY ) is weathering a crisis in the wind industry and will emerge stronger and more profitable, Keith Williams writes in an analysis published on Seeking Alpha .

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