More good-ish PLMish news, this time from Hexagon
Hexagon just announced that it will report BETTER results than the market expects for its June-ending quarter. Here’s what they said:
Due to higher earnings than market expectations for the second quarter of 2020, Hexagon is today publishing its preliminary results. Adjusted operating profit (EBIT1) for the second quarter 2020 amounted to 226 MEUR (239) corresponding to an EBIT1 margin of 25.3 per cent (24.5). Net sales amounted to 897 MEUR (976) and organic sales declined by -10 per cent compared to the same period last year. Regarding the reporting segments within Hexagon, Industrial Enterprise Solutions recorded -10 per cent organic growth and Geospatial Enterprise Solutions recorded -9 per cent organic growth. Continued growth in software and services combined with a recovery in China and temporary short-term cost saving measures contributed to the resilience of the earnings development despite the disruptions caused by the Covid-19 pandemic.
Let’s not get giddy here. If you read carefully, you’ll note that Q2 revenue was down 10% from a year ago to €897 million. Not awesome but that’s still way ahead of the analyst forecasts that I can see, which modeled Q2 revenue at around €870 million. And the comment notes that software revenue was up by an unspecified amount, I’ll call it good-ish overall.
We’ll know more when Hexagon issues its full report on 24 July 2020.