Clarivate Expects 2024 Revenues Of $2.57B-$2.67B Vs. $2.69B Consensus And Adjusted Diluted EPS Of $0.70-$0.80 Vs. $0.84 Consensus
Portfolio Pulse from Benzinga Newsdesk
Clarivate projects its 2024 revenues to be between $2.57B and $2.67B, below the consensus of $2.69B, and adjusted diluted EPS to range from $0.70 to $0.80, under the consensus of $0.84. The company anticipates organic growth, offset by soft transactional revenue and a small divestiture in the IP segment. Despite topline growth, investments and cost inflation are expected to contract profit margins. Capital spending will increase to about 10% of revenues for product innovation, with strong cash flow aimed at reducing debt.
February 27, 2024 | 11:18 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Clarivate anticipates 2024 revenues and adjusted EPS below consensus, with organic growth offset by soft transactional revenue and a small divestiture. Investments and cost inflation expected to contract profit margins.
Clarivate's projected revenues and EPS for 2024 are below market consensus, indicating potential concerns about its growth trajectory and profitability. The emphasis on organic growth and reducing debt, while positive, may not offset the immediate negative perception of lower-than-expected financial targets. This could lead to short-term negative sentiment among investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100