On Tuesday, Dassault Systemes, a French software company, reduced its full-year earnings forecast, causing a decline in its stock price
The company cautioned that customers were being cautious with their spending and postponing contract signing.
It anticipates that diluted earnings per share (EPS) will increase by 8% to 11% year over year in 2024, as opposed to the previous guidance of 10% to 12%.
The group’s sales were impacted by “large transaction delays,” according to CEO Pascal Daloz.
Dassault, a prominent French IT organization, provides software to various industries, including industrial organizations, aircraft manufacturers, and automobile manufacturers.
“Importantly, all deals that have been delayed are still in our roadmap for future quarters,” Daloz indicated.
“However, we anticipate that a certain volatility in customers’ decision-making will continue and consequently believe it is prudent to reflect this in our full-year outlook.”
As of 0733 GMT, the group’s shares were down 4.7%, on the brink of their most significant day-to-day decline since early February.
JPMorgan analysts noted that investors were not necessarily anticipating a reduction in guidance at this juncture of the year.
They also stated that inquiries regarding the rationale behind Dassault’s decision to identify a complex environment will arise, as the geopolitical situation has been uncertain for an extended period.
Dassault’s preliminary total revenue for the second quarter was approximately 1.50 billion euros ($1.62 billion), below its forecast of 1.53 billion to 1.56 billion euros.
