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MarketScreener Homepage  >  Equities  >  Euronext Paris  >  EssilorLuxottica    EL   FR0000121667

ESSILORLUXOTTICA

(EL)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 07/06 03:59:55 pm
119.1 EUR   +0.68%
07/03ESSILORLUXOTTICA : UBS gives a Neutral rating
MD
07/03ESSILORLUXOTTICA : RBC sticks Neutral
MD
07/01ESSILORLUXOTTICA : Jefferies sticks Neutral
MD
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EssilorLuxottica forecasts profit growth despite coronavirus impact

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03/06/2020 | 03:44am EDT
FILE PHOTO: Ray-Ban sunglasses logo, a Luxottica brand, is seen in Milan

EssilorLuxottica expects continued profit growth this year after stronger 2019 results, saying on Friday the outbreak of coronavirus had not hit output at its Italian factories and its production in China was getting back to normal.

The owner of eyewear brands such as Ray-Ban and Oliver Peoples, said the coronavirus had, however, hurt its Chinese business, which represents about 5% of its total revenue.

Shares in EssilorLuxottica were down 3.24% in early trading, reflecting fears of disruptions to business from the coronavirus could lead to a prolonged global economic slowdown.

"In terms of production, EssilorLuxottica plants in China are currently operating at slightly reduced capacity, which is quickly normalizing, while the plants in Italy and all other locations are currently running at full capacity," it said.

Formed in 2018 from the merger of French lens maker Essilor and Italian eyewear group Luxottica, the company said adjusted net profit, which strips out acquisitions and other costs, rose 4.8% at constant exchange rates to 1.94 billion euros ($2.18 billion) last year, enabling it to exceed targets.

EssilorLuxottica, which expects the coronavirus epidemic to fade, forecast its sales would rise 3%-5% in 2020 and adjusted net profit growth to reach up to 1.2 times its revenue growth.

A series of challenges nonetheless faces it this year with governance at the top of the list.

Its merger was plagued from the start by rows over who should run the business. These culminated last year when Luxottica's founder and largest shareholder of the new entity, Leonardo Del Vecchio, began an arbitration process.

This was soon abandoned, with the parties pledging to find a new chief executive by the end of 2020 at the latest.

This week the group said co-chief financial officer, Hilary Halper, was stepping down. It gave no reasons for her departure. She was replaced on Friday by David Wielemans, formerly a CFO with Essilor's Sun & Readers unit.

Governance issue led some investors to express concerns over the company's ability to deliver on the merger and the promised cost cuts of up to 600 million euros a year from 2022.

Third Point, a U.S. hedge fund known to have pushed for changes at companies ranging from Nestle to Campbell Soup, has recently pressed EssilorLuxottica to boost earnings and urged it to "accelerate leadership transitions".

EssilorLuxottica will also need to convince regulators its proposed acquisition of Dutch opticians group GrandVision for up to 7.2 billion euros in cash will not push up prices or reduce choice for consumers.

EU antitrust regulators are investigating the case. Their decision is expected in July.

By Matthias Blamont

Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. -2.11% 6.5 Delayed Quote.20.73%
CAMPBELL SOUP COMPANY -0.02% 49.31 Delayed Quote.-0.20%
ESSILORLUXOTTICA 0.42% 118.8 Real-time Quote.-12.89%
GRANDVISION N.V. -0.39% 25.4 Delayed Quote.-7.00%
JUST GROUP PLC -2.54% 47.66 Delayed Quote.-38.10%
NESTLÉ S.A. 0.82% 105.98 Delayed Quote.0.32%
RISE, INC. 6.45% 33 End-of-day quote.10.00%
THE GLOBAL LTD. 2.87% 215 End-of-day quote.-54.35%
THE LEAD CO., INC. 0.28% 357 End-of-day quote.-8.46%
THE NEW HOME COMPANY INC. 4.06% 3.33 Delayed Quote.-31.33%
WILL GROUP, INC. 5.03% 668 End-of-day quote.-46.65%
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Latest news on ESSILORLUXOTTICA
07/03ESSILORLUXOTTICA : UBS gives a Neutral rating
MD
07/03ESSILORLUXOTTICA : RBC sticks Neutral
MD
07/01ESSILORLUXOTTICA : Jefferies sticks Neutral
MD
07/01ESSILORLUXOTTICA : Deutsche Bank reaffirms its Neutral rating
MD
07/01ESSILORLUXOTTICA : Kepler Cheuvreux remains its Buy rating
MD
06/25ESSILORLUXOTTICA 2020 ANNUAL SHAREHO : Shareholders adopt all Board resolutions
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06/25ESSILORLUXOTTICA : 2020 Annual Shareholders' Meeting: Shareholders adopt all Boa..
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06/25ESSILORLUXOTTICA : Message from the Executive Chairman and the Executive Vice-Ch..
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06/25ESSILORLUXOTTICA : Answers to Shareholders' Questions
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06/23LEONARDO DEL VECCHIO : ECB needs few weeks to review Del Vecchio raising Medioba..
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Financials
Sales 2020 15 009 M 16 974 M 16 974 M
Net income 2020 1 237 M 1 399 M 1 399 M
Net Debt 2020 3 220 M 3 642 M 3 642 M
P/E ratio 2020 54,6x
Yield 2020 1,25%
Capitalization 51 212 M 57 913 M 57 916 M
EV / Sales 2019
EV / Sales 2020 3,63x
Nbr of Employees 152 954
Free-Float 63,2%
Chart ESSILORLUXOTTICA
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EssilorLuxottica Technical Analysis Chart | MarketScreener
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Technical analysis trends ESSILORLUXOTTICA
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 122,74 €
Last Close Price 118,80 €
Spread / Highest target 22,1%
Spread / Average Target 3,31%
Spread / Lowest Target -24,2%
EPS Revisions
Managers
NameTitle
Paul du Saillant Chief Executive Officer & Director
Leonardo del Vecchio Executive Chairman & Chief Executive Officer
Jean Carrier-Guillomet Co-Chief Operating Officer
Stefano Grassi Co-Chief Financial Officer
David Wielemans Co-Chief Financial Officer
Sector and Competitors
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