- Weg’s net income for the second quarter was R$1.59 billion, representing a 10% increase year over year, but fell short of the R$1.7 billion estimate.
- The company reported net operating revenue of R$10.21 billion, with a 10% year-over-year increase, yet below the estimated R$10.97 billion.
- Net operating revenue from the domestic market reached R$4.18 billion, marking a modest growth of 1% from the previous year.
- Revenue from the external market showed a robust 17% increase, totaling R$6.03 billion.
- Earnings before interest, tax, depreciation, and amortization (Ebitda) were R$2.26 billion, up 6.5% year over year, but lower than the expected R$2.39 billion.
- The Ebitda margin stood at 22.1%.
- Capital expenditure saw a significant increase of 49% year over year, amounting to R$583.4 million.
- Return on invested capital was notably strong, at 32.9%, surpassing the 30.8% estimate.
- Market consensus on Weg includes 7 buy ratings, 6 hold ratings, and 3 sell ratings.
A look at WEG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores indicate a positive long-term outlook for WEG. With strong scores in Growth and Resilience, the company is poised for expansion and shows robustness in the face of challenges. These factors suggest a promising future for WEG in terms of expanding its market presence and maintaining stability.
Although WEG has average scores in Value, Dividend, and Momentum, its high scores in Growth and Resilience overshadow these aspects, indicating a potential for long-term success in the industrial machinery sector. The company’s focus on manufacturing and distributing a wide range of industrial products positions it well for sustained growth and resilience against market fluctuations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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