Shares in Vestas Wind Systems jumped after the Danish wind-turbine maker posted higher second-quarter earnings and improving profitability, which enabled the company to increase its full-year margin guidance.
In early morning trade, shares jumped 18.5% to 209.9 Danish kroner. Shares are up 21% over the year to date.
Vestas posted a stellar second-quarter performance that might be its best print in several years, J.P. Morgan analysts wrote in a note to clients. It is also the first time in a decade that the company has upgraded its full-year margin guidance alongside first-half results, they say. Overall, the company beat consensus across all divisions.
The earnings growth was accompanied by a 400-million-euro share buyback, equivalent to $461.7 million.
For the second quarter, the company posted an on-year 26% rise in revenue to 4.72 billion euros and adjusted earnings before interest and taxes of 446 million euros. This delivered an adjusted margin of 9.4% compared to 1.5% in the same period last year.
While its full year revenue outlook was kept at between 20 billion euros and 22 billion euros, its adjusted earnings margin was increased to between 7% and 9%. It had previously guided for a 6% to 8% margin.
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