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Today, Thursday 11 July 2024, StockCharts365.com has taken a closer look at a very exciting and interesting share on the Oslo Stock Exchange: Kitron ASA (ticker on the Oslo Stock Exchange: KIT).


[11 July 2024]


Today, Thursday 11 July 2024, StockCharts365.com has taken a closer look at a very exciting and interesting share on the Oslo Stock Exchange: Kitron ASA (ticker on the Oslo Stock Exchange: KIT).


The overall technical picture for the share is now very positive, and indicates that the share has significant potential both in the short and long term.


Read more about this below in today's case under the technical analysis of Kitron ASA (ticker: KIT).


 

First a little about the company Kitron ASA (ticker on the Oslo Stock Exchange: KIT)


Scandinavia’s leading EMS company with a global ambition


Kitron is a leading Scandinavian Electronics Manufacturing Services (EMS) company, delivering improved flexibility, cost efficiency, and innovation power through the value chain.


Kitron was established in the early 1960s in Arendal, Norway. Kitron’s head office is now in Asker, Norway.

Our strategy is to have a strong local presence in all regions. Kitron has operations in Norway, Sweden, Denmark, Lithuania, Germany, Poland, the Czech Republic, India, China, Malaysia, and the United States. In each of these regions, we tailor our offering to suit the local needs best.


The company’s core areas of expertise are in the sectors of Connectivity, Electrification, Industry, Medical Devices and Defence/Aerospace.


In addition, Kitron is developing expertise in Automotive Electronics with a special focus on Autonomous Technologies.


For more information about the company, visit their website here:



 

Kitron ASA (ticker on the Oslo Stock Exchange: KIT) presented its Q2-2024 results this morning, Thursday 11 July 2024.


Kitron: Q2 2024 - Robust profitability and positive outlook despite sector challenges


(2024-07-11) Kitron today reported quarterly figures that reflect the company's ability to maintain operating margins in line with the company's strategic target despite sector challenges.


Kitron's revenue for the second quarter was EUR 167.6 million, compared to 206.3 million last year. There was strong growth within the Defence/Aerospace market sector, while other market sectors declined.


Second-quarter operating profit (EBIT) was EUR 15.0 million, compared to 19.2 million last year. EBITDA was EUR 19.6 million, compared to 23.5 million last year.


Profitability expressed as EBIT margin was 8.9 per cent, compared to 9.3 per cent last year.


The order backlog ended at EUR 454.5 million, a decrease of 15 per cent compared to last year but an increase of 2 per cent from the preceding quarter.


Peter Nilsson, Kitron's CEO, comments:


"Kitron is well-positioned for growth over the next 12 months. With robust performance in the Defence and Aerospace sector and strategic cost-saving measures, the company is well-placed to capitalize on emerging opportunities."


Profit after tax amounted to EUR 10.4 million, compared to 15.7 million in the same quarter the previous year. This corresponds to earnings per share of EUR 0.05, compared to 0.08 last year.


Solid operating cash flow


Operating cash flow in the first quarter was EUR 18.8 million, compared to 12.7 million in the second quarter of 2023.


Net working capital was EUR 188 million, a decrease of 1.0 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 28.4 per cent compared to 22.3 per cent last year.


Outlook


For 2024, Kitron reiterates its outlook from the first-quarter report and expects revenue to be between EUR 660 and 710 million with an operating profit (EBIT) between EUR 53 and 60 million, including EUR 4.8 million in restructuring costs in the first quarter.


Attachments:



 

Technical Analysis of Kitron ASA (ticker on the Oslo Stock Exchange: KIT)

Charts are from the technical analysis program Vikingen.


Technical Analysis of Kitron ASA (ticker on the Oslo Stock Exchange: KIT):


Kitron shows a strong development within a long-term rising trend (cf. weekly chart), and further price rises are signaled for the share in both the short and long term. New positive technical signals have now been triggered for the Kitron share, and after breaking up from a large consolidation formation. The share has also broken above an important technical resistance level around NOK 34.00 (cf. daily chart). The stock has also broken above both the 50-day and 200-day moving averages recently, and now the 50-day moving average is also close to breaking above the 200-day moving average (what is called a Golden Cross signal in technical analysis). This helps to underpin the otherwise very positive technical picture for the Kitron share, and confirms that both the short-term and long-term trend for the share is now positive.


Furthermore, StockCharts365.com's own analysis models, both short-term and long-term (The TradingList and The SignalList) are now in a buy signal for Kitron ASA (KIT), and thus signal further growth for the stock both in the short and long term. The overall technical picture for the Kitron share is now very positive, both in the short and long term, and new positive technical signals have been triggered for the share in recent days. The company today presented its Q2-2024 results and its guidance for the year 2024. This has been well received in the market here today. According to the long-term upward trend that the share is moving within, a potential for the share of around NOK 80.00 - 100.00 is signaled in the 9-12 month term. StockCharts365.com finds the Kitron share very interesting here at today's price level, and therefore sees a potential for the share to reach up to NOK 80.00 - 100.00 in 9-12 months' time. What could potentially change the currently very positive technical picture for the Kitron share would be if it were to break below the 50-day and 200-day moving averages, and below the NOK 32.00 level. But as the overall very positive technical picture for the Kitron share now appears, it signals a significant potential for the share, both in the short and long term.


 

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