Atos shares tumble on guidance cut
Shares in Atos SE (ATO.FR) tumbled Tuesday after it cut its 2018 revenue growth forecast, citing a mixed third quarter, and adjusted its 2019 targets to include the effects of its acquisition of U.S. company Syntel Inc.
Atos said it expects 2018 revenue growth of around 1% compared with previous expectations of 2% to 3%. The French information-technology company said the cut in its outlook was due to a deterioration in its infrastructure and data management business in North America and Germany, as well as a challenging international economic environment.
Chief Executive Thierry Breton said he expected the economic environment to become more uncertain, and he "wants to be cautious" regarding the company’s growth targets.
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At GMT 0752, shares in Atos traded 18% lower at EUR73.96.
Analysts at UBS said 0.1% organic revenue growth in the third quarter was "well short of consensus" at 1.9%.
"We believe a negative reaction is inevitable given the rapid deterioration in trading since Q2 results at the end of July," UBS said.
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