Article / 09 February 2016 at 10:38 GMT

Vestas lifts dividend as Q4 beats consensus

Consulting editor / TradingFloor
Norway
  • Q4 EBIT before special items rises 60% y/y to 404mn euros (Reuters poll: 374 mn)
  • Company says it expects FY2016 revenue of at least 9bn euros
  • Forecasts FY 2016 EBIT margin before special items of at least 11 percent 
  • Vestas proposes dividend of DKK 6.82, up from 3.90
  • Saxo's Garnry says managment remarks optimistic and the stock still interesting
  • Shares leap as much as 10% on a weak Copenhagen bourse

Robin Rigg, UK, windfarm
Robin Rigg wind farm offshore Scotland. Photo courtesy of Vestas Wind Systems A/S

By John Acher

World-leading wind turbine maker Vestas reported a forecast-beating 60% rise in operating earnings for the fourth quarter and said its solid 2015 results enabled it to raise its divdend, lifting its shares sharply on a weak stock market.

The results and upbeat outlook from the Danish company provided a ray of sunlight amid deepening gloom in the markets where economists are now talking about a full-blown crisis.

”Vestas are raising dividends, with very, very optimistic signals from management," said Saxo Bank's head of equities strategy Peter Garnry. "They are seeing record revenue in 2016, beating the market by 5%, expectations were already pretty high."

Vestas Wind System said it would propose a dividend of DKK 6.82 per share, up from DKK 3.90 last year, a payout equal to 29.9 percent of 2015 net profit, and forecast full-year 2016 revenues would rise to a record of at least 9 billion euros.

”So Vestas is still a very interesting pick,” said Garnry.

The general plunge in the equity markets took Saxo Bank out of a long Vestas position earlier this week, but Garnry said the bank might look to re-enter the stock.

Operating profits before special items rose to 404 million euros in the fourth quarter from 252 million in the same quarter a year earlier, beating the average expectation of  374 million in a Reuters poll of analysts.

"We [...] secured our highest ever order intake, doing so across 34 countries on five continents, which bodes well for continued high activity levels in 2016," Vestas Chief Executive Anders Runevad said in the statement.

Shares in Vestas surged as much as 10%, but eased off their session highs to trade up 7% by 1014 GMT on a weak Copenhagen bourse.

John Acher is a consulting editor at TradingFloor

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail