Shares in Bechtle have surged following the company’s announcement of increased revenue and earnings for the second quarter. The German provider of IT systems and technology reported earnings after taxes of €65.95 million ($72.4 million), compared to €63.62 million in the same period last year. Revenue also saw a 6.5% rise to reach €1.51 billion.
The IT system house segment was the main contributor to Bechtle’s overall revenue and earnings, driven by strong sales with public-sector clients and large customers.
However, IT e-commerce experienced a slight decline in revenue during the first half of the year, falling short of expectations.
Despite this, Bechtle remains optimistic about the future, expecting demand to gradually rise in the second half. The company has confirmed its outlook for 2023, anticipating a significant increase in revenue and earnings, maintaining a margin similar to that of the prior year.
Analysts believe that Bechtle will gain momentum in the coming months due to improved management and market conditions. Jefferies analysts Martin Comtesse and Fabian Piasta noted that while the macro outlook for the second half appears cautious, Bechtle is expected to perform well.
Overall, Bechtle’s positive Q2 results have generated confidence in the company’s future prospects.
