(Adds analysts, share price, detail)
COPENHAGEN Aug 13 Shares in Danish healthcare
products company Coloplast fell by as much as 5
percent on Wednesday after the company reported third-quarter
results a touch below analysts' expectations.
Coloplast, Denmark's fourth-biggest company by market value,
posted revenue growth in one of its two biggest divisions
slightly below forecasts and maintained its full-year guidance,
when some had been expecting an increase.
"In general they delivered on the weaker side of market
expectations and that is due to the ostomy and continence
divisions," Alm Brand markets analyst Michael Friis said.
Coloplast said that its its ostomy business achieved revenue
of 1.27 billion Danish crowns ($228 million) while organic sales
grew 6 percent, slightly less than an average forecast of 1.31
billion crowns in a Reuters poll of analysts..
Revenue at the continence care division was 1.13 billion
crowns, in line with the concensus forecast.
By 1109 GMT shares in Coloplast were down 2.8 percent,
against a 0.4 percent rise in Copenhagen's benchmark index
"There are so many positive scenarios priced into the stock
that there is no room left for the small disappointments that we
see in ostomy," Sydbank analyst Soren Lontoft said.
The group reiterated its full-year forecast for organic
revenue growth of 9 percent in local currencies and operating
margin before special items of between 33 percent and 34 percent
at constant exchange rates and 33 percent in Danish crowns.
"They maintained their guidance while I expected guidance in
Danish crowns to be raised a little ... The share price is
expensive compared with similar companies," Alm Brand's Friis
Coloplast is among the three most highly valued stocks in
the Thomson Reuters Europe Medical Equipment Index
, with a price to book ratio of 14.5. It has
the highest return on equity in the index at 42.32 percent, the
The group, selling products such as colostomy bags and wound
dressings, reported earnings before interest and tax (EBIT) of
1.05 billion Danish crowns in April-June, compared with 943
million crowns a year earlier and roughly in line analysts'
expectations of 1.01 billion crowns.
(1 US dollar = 5.5822 Danish crown)
(Reporting by Stine Jacobsen; Additional reporting by Ole
Mikkelsen; Editing by Sabina Zawadzki and David Goodman)