Shares in Sopra Steria experienced a slide following the release of the company’s third-quarter results, which fell slightly short of consensus estimates.
Disappointing Q3 results
At 0938 GMT on Friday, Sopra Steria shares were down 7.4% at EUR160.40, reflecting the market’s response to the company’s performance.
The French consulting and digital-services provider reported revenue of 1.345 billion euros ($1.42 billion) for the third quarter, representing a 4% increase at constant scope and exchange rates.
Revenue expectations missed
According to a poll by Visible Alpha based on six estimates, the company was expected to post revenue of EUR1.36 billion. Despite the positive growth, the company’s actual revenue fell slightly short of market expectations.
Sales driven by key sectors
Sopra Steria attributed its sales growth primarily to activities in the defense, aerospace, public sector, and transportation sectors. Notably, all five reporting units contributed to this growth.
Maintaining full-year targets
Amidst an uncertain geopolitical context, Sopra Steria confirmed its full-year targets. However, the company emphasized that these targets were subject to no major deterioration in the economy.
The company’s full-year targets include organic revenue growth of at least 6% in 2023, an operating margin on business activity slightly surpassing 9%, and free cash flow of at least EUR300 million.
Looking ahead, Sopra Steria aims to achieve an operating margin on business activity of approximately 10% by 2024.
While Sopra Steria’s Q3 results may have fallen slightly short of market expectations, the company remains optimistic about its future prospects and continues to strive for steady growth and improved financial performance.