Shares of Swiss construction materials specialist Sika surged in European trade after the company reported first-quarter sales figures that managed to surpass market expectations, despite a generally tough macroeconomic environment.
Revenue for the three-month period reached 2.49 billion Swiss francs ($3.18 billion), exceeding the consensus forecast of 2.46 billion francs compiled by Visible Alpha. This top-line result represented a 0.9% growth in local currencies, though it was a slight 0.2% dip on an organic basis.
Investor reaction was swift, pushing the stock up 8.7% to 149.1 francs per share by mid-morning. Momentum appeared strongest in the Asia-Pacific market outside of mainland China, where organic growth hit 5.2%, driven by activity in India and Southeast Asia.
Beating expectations on sales provides a measure of resilience for Sika amidst broader economic headwinds affecting the construction sector. The positive market reception suggests investors view the slight organic contraction as manageable given the current climate.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing