A profit warning, has attracted the investors of the Hornbach Holding on Tuesday, Worried about a possibly tough competition. The stock price of the Baumarkt-based parent company, broke as a clear tail light in the S-Dax 16.47 test percent on 42,10 euros. That was the lowest level since November 2010. This year, the loss Rate of the Hornbach-Holding-share amounts already to more than 40 percent.
Because of an unexpectedly clear result of a decline in the trading subsidiary, Hornbach Baumarkt in the third quarter, the Holding company expects that adjusted operating profit will fall compared to the previous year by more than 10 percent. So far, the Management had expected a stable development.
The company explained the reduction with increased purchasing prices and increasing competitive pressure. The sales target for the current fiscal year 2018/19 let Hornbach unchanged. A broker is not showed in the face of various profit warnings from German retailers on Tuesday morning particularly surprised by the reduction of the earnings target, but the clarity of this step. The share price of the Hornbach Baumarkt fell on Tuesday more than 16 percent.
HORNBACH HOLD.ST. o. n. — — ( — ) Xetra tradegate exchange lang & Schwarz in Frankfurt, London SE Int. Level 1StuttgartSchweizWien 1T 1W 3M 1J 3J 5J For detail view
Analyst Thilo Kleibauer of Warburg Research complained about the unexpected decline in earnings in the third quarter, praising the strong increase in sales. Due to the reduced profit target, he lowered his earnings forecasts for the financial years 2018/19 to 2020/21 and the price target from 80 to 71 euros.
HORNBACH BAUMARKT AG O. N. — — (–) Xetra lang & Schwarz tradegate exchange Frankfurt SE London Int. Level 1Stuttgart 1T 1W 3M 1J 3J 5J For detail view
The business model and the long-term strategy of the company holds Kleibauer but still promising, and looks at the share of the Holding company as significantly undervalued. Therefore, he stuck to his buy recommendation.