Sodexo's Q3 earnings show growth and positive outlook for full year.

From Investing.com: 2024-07-05 05:10:32

Sodexo (EPA: SW.PA) reports Q3 fiscal 2024 earnings with revenues hitting EUR 6.1 billion, a 5.6% increase from last year. Strong organic growth at 6.8%, led by North America at 9%. Full-year guidance remains positive, projecting 6% to 8% organic revenue growth and a 30 to 40 basis point operating profit margin improvement. Despite a significant FM contract loss, Sodexo is confident in future retention goals and pricing strategy.

Sodexo’s positive Q3 performance showcases resilience and growth strategy amidst challenges. The company aims to maintain a 96% retention rate and continues to expand in key markets, like U.S. universities and Europe. Bullish highlights include strong net new business trends and successful contracts, while bearish factors include a large contract loss affecting the retention rate and sector-specific deceleration. With a solid outlook for fiscal 2025, Sodexo remains focused on growth and profitability despite setbacks.

InvestingPro insights reveal Sodexo’s current market cap at $12.66 billion, a 7.3% revenue growth, and a price-to-earnings ratio of 44.28. Adjusted P/E stands at 16.6 for the last twelve months, indicating an attractive valuation. High shareholder yield and stable stock performance offer potential for long-term investors. Analysts predict profitability and positive trends, with detailed analysis available at InvestingPro for investors seeking comprehensive financial data and guidance.



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