ORA -6.55%: A very mixed reaction to ORA’s 1H24 results today, the stock initially rallied before the 10.30 am conference call started and then fell away from then on. The decline in share price is mirroring the miss of revenue (around 7% below consensus), however, earnings were resilient/solid, particularly in the newly purchased Saverglass business which had a month of contribution and beat expectations, while the Australian operation was inline while the US was a tad light on. All in all though, earnings (EBIT) was inline with consensus and given the miss on the revenue line, that implies margins were stronger. They said volumes still struggling amid high inventory at customers persist, however, they maintained FY24 guidance.
- We’re surprised about the share price performance from ORA today, the market treating them very harshly on what MM thought was a solid result (meet) and guidance (maintained).
MM remains bullish ORA
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