Evotec: Solid H116, 2016 EBITDA Guidance Upped
Edison | Aug 16, 2016 07:09AM ET
Evotec AG O.N. (DE:EVTG) delivered its Q216 and full H116 results last week, with sales largely in line with our expectations, while profits were boosted by lower than expected operating costs and higher other income. The company has raised its guidance and now expects adjusted EBITDA to more than double in 2016. Bayer’s move to Phase I with endometriosis is the most prominent news recently. Healthy cash flows and a maturing preclinical pipeline should support the share price in 2016 and 2017, in our view. We have increased our valuation to €620m from €575m.
Sales in line, better profits, decent H216 ahead
Evotec’s Q216 revenues were largely in line with our expectations and grew 13.6% y-o-y to €38.0m driven by a strong performance in both segments: EVT Execute, the drug discovery services business, and EVT Innovate, the collaborative academic/pharma drug discovery business. Q216 also included Sanofi (PA:SASY) revenues, consolidated from Q215 and thus more reliably reflecting organic y-o-y growth. Adjusted Q216 EBITDA of €8.6m was better than our forecast of €4.2m, mainly due to lower operating costs and significant net other income. Evotec has raised its guidance for FY16 adjusted EBITDA and now expects it to more than double y-o-y.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.