ABB –1.42%: todays’ quarterly update a touch soft in terms of guidance but still showed strong growth. Total connections at 494.8k was right at the top of guidance provided in December, jumping nearly 10% in the quarter. Higher marketing spend over the quarter weighed on earnings though, and guidance looks to assume higher costs will weigh on the second half as well. FY EBITDA is expected between $27m to $30m, around 10% below consensus. Despite this, the stock only fell marginally today after spending much of the session in the green. We spoke to management this morning, and they were excited by the growth being seen across the business with connections driving earnings in outer years despite taking on higher marketing costs near term. The Over The Wire (OTW) takeover remains in play with a vote expected later this month. It would be a transformative deal, taking ABB to a market leading position particularly in the business offering, providing scale and synergies.
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Performance update for March, stocks that drove returns & our current positioning
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