SES Shares: Stock Falls 11.53% Mid-Day After Disappointing Results
SES satellite operator's stock plunges Thursday morning, erasing a significant portion of its gains since the start of the year. The company released its nine-month results and, despite sustained growth in its activities, investors are penalizing a noticeable deterioration in profitability linked to the integration of the Intelsat acquisition.
Current Trading Status
As of this mid-day analysis, the stock is trading at €5.68, down 11.53% from the previous close of €6.42. Trading volume remains extremely low, with only 0.22% of the capital engaged, reflecting minimal liquidity in the session. This correction occurs in a mixed market context, with the CAC 40 down 0.53% at 8,031 points. Over the week, SES's performance stands at -19.49%, while since the beginning of the year, the stock still shows a gain of 58.66%, significantly outperforming the main Paris index which has risen by 8.42% over the same period. This trajectory reflects the appeal the stock has held for investors, driven by the theme of European technological sovereignty and optimism about its strategic prospects.
Financial Performance Insights
The source of this reaction lies in the figures released this morning by the company, which nevertheless show sustained growth. Adjusted EBITDA reached 849 million euros, up 11%, while revenue climbed 19.8% to 1.75 billion euros. SES also secured 1.4 billion euros in new contracts and renewals since the beginning of the year, bringing its order book to a record level of 7.1 billion euros. The company maintains its 2025 targets, aiming for revenue between 2.6 and 2.7 billion euros and EBITDA between 1.17 and 1.21 billion euros. However, the adjusted operating margin fell to 49%, from 53% a year earlier. This four-point margin decline, attributed to the integration of Intelsat effective since July 17, proved more pronounced than analysts anticipated, triggering a wave of massive profit-taking that contrasts with the company's solid commercial progress.
Technical Analysis
Technically, the stock is now in a fragile territory. The price is slightly above its 200-day moving average (€5.49) but significantly below its 50-day moving average (€6.33), indicating a short-term weakening. The RSI stands at 49, representing a neutral position with no imminent oversold signal. The MACD records a line at 0.08 and a signal line at 0.10, indicating slight bearish pressure. The technical support is at €6.07, a level that has not yet been tested in this session. The one-month volatility reaches 10.15%, reflecting a measured movement amplitude, while the very low beta of 0.32 highlights SES's weak correlation with overall market movements.
