Gerresheimer Rises as Quarterly Earnings Beat Estimates
Gerresheimer AG (GXI), a German producer of pharmaceutical and health-care equipment, rose to a 4 1/2- year high after second-quarter profit beat analyst estimates and the manufacturer raised its revenue forecast.
Gerresheimer climbed as much as 6.1 percent to 39.25 euros, the highest price since October 2007, and was trading 5.2 percent higher at 12:52 p.m. in Frankfurt.
Net income in the three months through May rose to 15.9 million euros ($19.5 million) from 12 million euros a year earlier, the Dusseldorf-based company said today in a statement. Profit beat the 14.8 million-euro average of five analyst estimates compiled by Bloomberg.
The manufacturer said it now expects full-year sales to rise 9 percent to 10 percent compared with an earlier forecast of 7 percent to 8 percent growth. Gerresheimer said it’s investing in a new glass-container plant in India, adding to new capacity in Germany and the Czech Republic, and that its medical-plastics systems order book is “very good.”
“Gerresheimer has a very clever business model,” Moritz Dullinger, an analyst at Kepler Capital Market SA in Zurich, said in a phone interview today. “They sell a lot of their simpler products, like beakers and bottles, in emerging markets, while targeting the developed markets with special syringes and other more sophisticated products.”
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