Key Points:
- Knorr-Bremse shares up 6.7% at EUR62.44
- Revenue for 2023 increased by 11% to 7.93 billion euros
- Earnings before interest and taxes rose 21% to EUR869.9 million
- Operating EBIT margin increased to 11.3%
Knorr-Bremse, a German manufacturer of brakes for commercial vehicles and trains, saw a significant increase in its shares following the release of better-than-anticipated results and optimistic guidance for the future.
Strong Financial Performance:
The company reported a revenue of 7.93 billion euros ($8.57 billion) for 2023, marking an impressive 11% growth from the previous year. Additionally, earnings before interest and taxes (EBIT) surged by 21% to EUR869.9 million, with an operating EBIT margin of 11.3%, up from 11.1%.
Analysts' Expectations Exceeded:
Analysts had expected revenue of EUR7.81 billion and EBIT of EUR861 million, according to consensus estimates from FactSet. Knorr-Bremse's actual results surpassed these expectations, driving a positive market response.
Upbeat Guidance for 2024:
Looking ahead to 2024, Knorr-Bremse anticipates revenue to range between EUR7.7 billion and EUR8.0 billion, excluding the recently sold Kiepe Electric business. The company also aims for an operating EBIT margin of 11.5% to 12.5%. This guidance, which excludes the Kiepe business contribution, is perceived as ahead of consensus by analysts.
In conclusion, Knorr-Bremse's strong financial performance and optimistic outlook have positioned the company for continued success in the coming year.