Shares of Swiss running-shoe maker On surge 21% after earnings surprise

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On Holding AG ONON, +22.55% stock soared 21% in early Tuesday trading after the newly-public athletic company reported a surprise third-quarter profit. Net income totaled CHf 13.0 million (US$14.0 million), or CHf 0.04 per share, up from CHf 8.1 million, or CHf 0.03 per share, last year. Sales totaled CHf 218.0 million (US$234.8 million), up from CHf 130.1 million last year. The FactSet consensus was for a loss of CHf 0.11 per share and sales of CHf 182.8 million. On’s Co-Chief Executive Martin Hoffmann called the most recent quarter the “strongest” in the company’s history in terms of sales. “Recent supply chain challenges will lead to a transitory supply shortage in the fourth quarter and the first half of 2022,” he said in a statement. “But since early November, all our production factories are open, and our outlook on net sales and adjusted EBITDA exceeds our original assumptions.” The company is guiding for sales of CHF 710 million for the full year, up about 67% from 2020. The FactSet consensus is for CHf 678.6 million. On is guiding for sales of CHF 960 million for 2022. On Holding stock began trading on Sept. 15. Shares have soared by nearly 50% over the past month. The S&P 500 index SPX, +0.57% is up 5.1% for the last month.

This article was originally published by Marketwatch.com. Read the original article here.

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