Intertek: commodities worse than exp, margins will now be flat YoY
For 1 Jan to 30 Apr, organic revenue growth was 7.0% (Nov/Dec 12 was 7.1%), with guidance for FY13 or 7-9% organic growth. Mixed report, the usual areas of growth, but Assurance was weak,...
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Intertek: trading sell remains
We are sticking with our trading sell on Intertek. Weakness in the mining services business took a while to manifest but when it did, the extent of the weakness took management by surprise. This...
View ArticleThe speed of moves have surprised everyone
As such there is little way analysts have reacted to FX swings in terms of numbers. There are definitional issues as some companies define it differently than others and Americas is often one item and...
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Testing stocks: Intertek, Bureau Veritas & SGS. Trading sells remain
It is interesting to note the continued weakness across all three names yesterday on a strong day for the market, following many resource stocks. The market is still digesting the negative impact from...
View ArticleNegative for Testing stocks (Bureau Veritas, Intertek, SGS): remain sellers...
Just over a month ago, Boart Longyear, a provider of drilling services to miners, profit warned and expected FY13 EBITDA to be at the low end of the consensus range of US$199-271mn. Today, the company...
View ArticleTesting stocks: remain seller post company meeting
Mining weakness not yet factored in. Intertek told us that within mining, it is exploration that has fallen off a cliff. In fact it has gone to zero (see Boart Longyear (BLY AU) warned for the second...
View ArticleTesting names: Expect more mining related weakness
Another jolly day in Aussie Mining Services with stocks down between 2% (UGL, Worley Parsons) and 11% (Boart Longyear, Emeco). Boart now down nearly 30% in 3 days. We stick with our concerned stance on...
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Beware ‘Miners in Disguise’
There is a huge mining bust going on, clearly. All the junior miners are getting slaughtered and in many cases in Australia one does wonder how many of the Mining Services names are actually going...
View ArticleIntertek: slowdown confirmed, and value re-emerging
In line numbers, growth slowed further from the May IMS but was expected. At the May IMS, organic growth was +7.0%, now H1 organic +6.3%. Minerals and Europe are the challenge, as expected. Guidance...
View ArticleHQGB graduates and rejects
As a reminder, the following have been omitted from the HQGB, some because they have got too expensive, some because they failed the growth hurdle, and some because they had (have) margin issues. Many...
View ArticleBureau Veritas, numbers are light
Q1 sales €930m are €10m below street estimates. By business construction and Marine posted negative organic (-0.5% and -8.8% respectively). Q1 Org Rev Growth 4.8% is a miss (street c.5.2). Guiding FY...
View ArticleTrading Sell: Intertek
Bureau Veritas numbers on Tuesday were weak notably in Commodities, Industrial and Marine. Marine not comparable but the other 2 are. BVI down 7% this morning on heavy volume. SGS -4%. Intertek...
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SGS: a decent laggard vs. Intertek (shown) and Bureau Veritas
All have been hit by weakness in European business and mining activity, SGS has by far the biggest mining exposure, but resources/China stocks are staging a recovery and weakness in mining business...
View ArticleIntertek: avoid
“The weakness of the minerals market and challenging conditions in Europe have continued, alongside lower growth in the industrial inspection market following 2 years of exceptionally high growth”. The...
View ArticleAnother warning in Oil service, avoid SGS
Worley Parsons in Australia fell -25% on warning this morning. The reason being a, “delay in upturn in markets.” “The decline in the Australian business has been greater than expected, as hydrocarbons...
View ArticleRe-focus on free-cash flow and earnings resilience
‘Earnings growth certainty’ is an on-going theme at Aviate. Max Elvidge has written a very good note that focuses on FCF to find stocks with “earnings resilience” via acquisitions. He calls these...
View ArticleIntertek: growth pause, not quite a bargain yet
Some of this is self-inflicted (exiting low margin business) some due to low growth in the Energy segment, but 0.3% organic growth for the first 4 months isn’t good enough against guidance of +2-3% for...
View ArticleShorts
On the short side we remain structural sellers of Swatch, Elekta and Essilor and we added to our recent cautious comments on Schibsted on Saturday. We see little reason to change on Edenred. Riccardo...
View ArticleIntertek: 1H 2014
Intertek reported revenues slightly light of expectations at £1.02bn, but EPS ahead by 3.7% at 61.2p (a 1.1% decline from the prior year). On a constant currency basis the firm actually increased EPS...
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