ABB, the Switzerland-based technology company, is set to release its third-quarter financial results on Wednesday. Here are the key details you should know:
Revenue Expectations
Analysts predict ABB’s revenue for the quarter to reach $8.1 billion, as stated by a company-provided consensus. This represents an increase compared to the $7.41 billion reported in the same period last year.
Net Income Forecast
The consensus among analysts suggests that ABB will report a net profit of $919 million for the period. In the third quarter of last year, the company achieved $360 million in net income after accounting for a non-operational provision related to its Kusile power-station project in South Africa.
Areas of Focus
Order Growth
Deutsche Bank analyst Gael de-Bray anticipates a slowdown in ABB’s order growth. The bank expects a mere 1% increase in orders for the third quarter, with a book-to-bill ratio of 0.99. This is notably lower than the 4% order growth reported in the same period last year. The expected decline is attributed to weak Chinese and European manufacturing indicators, as well as deteriorating market sentiment over the summer. Jefferies analysts also have a pessimistic outlook, projecting ABB’s orders to be 2% below the consensus estimate of $8.15 billion. They believe that China’s weakness will particularly impact ABB’s robotics and discrete automation business, while the process automation business is expected to deliver better results. Jefferies also suggests that ABB’s electrification and motion businesses may reflect incremental short-cycle weakness in their results, similar to the second quarter when orders decreased by 2% compared to the previous year.
Sentiment Analysis
Analysts are keen on understanding ABB’s forward projections and evaluating whether the short-cycle order weakness is spreading to later-cycle markets and affecting customer decision making. Morgan Stanley analysts highlight the significance of these factors in their research note.
Stay informed about ABB’s future developments and performance.
