- 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 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.
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.
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.