Gemalto: H1 sales above estimates but disappointing margins

NEUTRAL, Fair Value EUR83 (+12%)
News published on August Thursday 27, 2015
Share on

Gemalto posted H1 sales above our estimate and that of the consensus: Payment, M2M, Security and e-Government outperformed and more than offset the disappointment on the SIM business and related services sales in the US (mainly due to the Softcard mobile payment service closing). Regarding profitability, H1 PFO was in line with our estimate and slightly below consensus but IFRS current EBIT and net profit were well below expectations. As we expected, management reiterated its annual PFO guidance (double-digit growth) towards its 2017 target of over EUR660m. Waiting for the conference call today at 3pm (Paris time), we maintain our Neutral rating and FV of EUR83. 

The Essentials

Everything you need to know about investment banking dedicated to growth
Recent Transactions Highlights
From M&A, to IPOs see what’s been happening at Bryan, Garnier & Co this year
Join our Team
Bryan, Garnier & Co is always looking for talent in all our divisions, at all levels
Explore our opportunities