Alten: simply impressive!
The performance of Alten remained impressive in H1 2019: revenues were up 16.8%
The company, as always, was the best performer of all ER&D service vendors with an onshore background, with its CC/CS growth (+12.5%
Also, Alten excels at managing its adjusted EBIT margin, which reached 9.0% in H1 2019, down by 30 bps
Alten is more profitable than Akka (6.7%) and Expleo (8.7%). The company is, however, not as profitable as Altran, which is now in a different league with its adjusted EBIT margin of 11.2%, thanks to Aricent and despite the impact of the cybersecurity attack in H1.
Alten has not provided a precise guidance for full-year 2019 but suggested its adjusted EBIT margin would bounce back in H2: the company should reach a margin close to 10% in full-year 2019. Meanwhile, we expect the company’s CC/CS to reach more than 10%
Investors reacted very positively to Alten’ earnings, sending the stock as high as 10% during the day. The share finished at +4%, with its market cap reaching USD 4.0bn, close to Altran’s own market share (USD 4.2bn).