Share shivers after the release of the first quarter figures.
Lerøy Seafood Group delivered this morning their results, which were under the analysts expectations. The company’s operating profit before value adjustment was EUR 74 million (NOK 816 million), compared to expected EUR 85 million (NOK 945 million), according to Infront.
- Also read: Lerøy posts increased earnings during coronavirus – aiming for 200,000 tonnes harvest volume next year
The stock price crashed 7.2 per cent in the first hour of trading Thursday.
The investment bank Arctic Securities writes that they will raise cost expectations and expect to reduce 2020 estimates by around 15 per cent, according to the report.
“We still believe the valuation is attractive in the long run, and look at a weakness in the stock today as an opportunity to buy,” writes the brokerage house according to TDN Direkt.
Another investment bank, Pareto Securities, will downgrade 2020 estimates by 5-10 per cent, given the weak quarter, and expectations of somewhat higher costs into the second quarter.
“On the other hand, we expect to make minor changes for 2021 as the company expects lower costs in the second half of 2020, partly driven by promising results from the big-smolt strategy.”