Shares in Dutch information services group Wolters Kluwer (WLSNc.AS) fell by 3.5% on Wednesday after the company reported first-half results that largely met analysts' expectations. While the company reiterated its full-year guidance, the market had hoped for a positive surprise in the form of a guidance increase and a beat on results, according to Barclays.
Barclays analyst Nick Dempsey noted that Wolters Kluwer shares have performed well this year, leading to anticipation of a positive earnings update. However, the company's first-half revenue came in at â¬2,891 million ($3.13 billion), slightly below ING's forecast of â¬2,894 million.
ING analysts highlighted that, compared to consensus estimates, revenues were in line, while adjusted operating profit and adjusted diluted EPS were both up by 1%.
Despite the share price decline, Wolters Kluwer remains up 18.14% year-to-date.
The company's unchanged full-year guidance suggests that ING expects limited adjustments to consensus estimates. However, the market's reaction to the results highlights the high expectations surrounding the company, and the potential for disappointment when these expectations are not fully met.
The news comes as Wolters Kluwer continues to navigate a challenging global economic environment. The company's focus on providing essential information and software solutions to a range of industries, including legal, tax, accounting, and healthcare, positions it for growth in the long term. However, the current market volatility and potential economic headwinds may present challenges in the near future.