QSC Gains as Commerzbank Sees Change of Strategy On Track
Stock Chart for QSC AG (QSC)
QSC AG (QSC) rose to a 2 1/2-year high after Commerzbank AG said the German company’s second-quarter earnings indicate that a strategy shift to providing information technology from operating telecommunications is still on track.
QSC increased as much as 11 percent to 3.35 euros, the highest intraday price since January 2011, and traded up 10 percent at 12:58 p.m. in Frankfurt, valuing the company at 412 million euros ($548 million). Volume was almost quadruple the three-month daily average.
Second-quarter earnings, before interest, taxes, depreciation and amortization rose 6.1 percent from a year earlier to 19.2 million euros, the Cologne-based company said in a statement today, reiterating its forecasts for 2013. That beat the 18.7 million-euro average of six analyst estimates compiled by Bloomberg. New orders at the direct-sales unit jumped 2.5 times to 30.5 million euros.
The figures “indicate sound execution of QSC’s transition path” to information communications technology, Heike Pauls, a Frankfurt-based analyst at Commerzbank, said in a report today. “Taken together with a sound order entry, results seem to support our view of returning headline growth as of next year” after revenue fell in the first two quarters of 2013. She recommends buying the stock, and estimates the share price will reach 3.40 euros.
QSC bought German companies IP Partner AG and INFO AG in 2011 to help with its strategy move to activities including cloud-computing services.
To contact the editor responsible for this story: Angela Cullen at firstname.lastname@example.org