In trending news on French stocks, shares of Worldline SA (FR:WLN) fell 10.17% on Wednesday after the payments company’s performance was hit by a €1.15 billion goodwill impairment charge in its Merchant Services division. As a result, the company reported a net loss of €817 million in its full-year results for 2023.
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In the last 12 months, the Worldline share price has lost over 70% of its value. In October 2023, WLN stock declined by 50% on a single day after the company slashed its full-year targets, citing an economic downturn in its key markets.
Weak Outlook
Along with its results, Wordline projected a weak revenue outlook for 2024. Sales growth is expected to decelerate to at least 3% as households opt for more economical products. Adjusted EBITDA is projected to reach at least €1.17 billion. Moreover, free cash flow is expected to be €230 million in 2024, down from €355 million reported in 2023.
For the full year, Wordline’s revenue of €4.6 billion saw organic growth of 6% as compared to 2022. Among its segments, Merchant Services recorded a growth of 8.9%.
Is Worldline a Good Stock?
Post-results, Jefferies analyst Hannes Leitner reiterated his Sell rating on WLN stock, predicting a decline of 16.7%. Leitner stated that considering the lower estimates for 2023 and further reduced targets for 2024, the company is at the beginning of an “overhaul.” He believes there are no immediate catalysts for investing in the stock at this time, advising investors to wait for some signals of improvement.
According to TipRanks consensus, WLN stock has a Hold rating based on four Holds, two Sells, and one Buy recommendation. The Worldline share price forecast is €14.74, which is 33.4% higher than the current trading level.
