ABB Inc. (NASDAQ: (ABB) stock gained by 1.45% at last close whereas the ABB stock price declines by 5.96% in the pre-market trading session. ABB is a major global technology corporation that drives societal and industrial reforms toward a more effective and sustainable future. ABB pushes the limits of technology by linking software to its electrification, robotics, automation, and motion portfolios to accelerate innovation.
ABB stock’ Financial Highlights
ABB announced its third-quarter 2021 financial outcomes. Given below is the summary:
- The company recorded orders of $7.9 billion which is an increase of 29% compared to the previous year’s third quarter.
- ABB generated a revenue of $7.0 billion, a rise of 7%.
- The income generated from operation was $852 million for the third quarter of 2021.
- The operational EBTIDA and operational margin were recorded as $1062 million and 15.1% respectively.
- The Basic EPS for the third quarter of 2021 was $0.33. This is a decline of 85%.
- And lastly, the cash flow generated from the operating activities was $1104 million.
CEO Björn Rosengren, stated,
There was a strong level of demand supporting significant order growth in Q3. The tight supply chain, on the other hand, had a greater impact on their sales than we had anticipated. Despite this, they increased underlying operating profits and margins, generated solid cash flows, made headway with portfolio modifications, and launched a number of new products.
The company was also appreciated for its steps towards sustainability as well as they have been included in the FTSE4Good Index Series. The company has a score of 4.2 on a scale from 0 to 5 in the FTSE4Good Index Series.
Fourth Quarter Outlook
- ABB expects a tight supply chain to impair customer shipments in the fourth quarter of 2021. The third quarter’s comparable sales increase is expected to be similar.
- In accordance with recent historical trends, the operational EBITA margin is projected to fall sequentially in the fourth quarter.
- ABB expects its revenue growth of 6% to 8% (down from just under 10%) for the full year of 2021, hindered by supply limitations near the end of the year.
- ABB forecasts a rapid improvement in operating EBITA margins from 2020 to 2023, with a target of the upper part of the 13 percent -16 percent range.
