THALES Shares Dip 2.8% on Friday Despite Better-than-Expected Quarterly Results
Thales ended the week down by 2.8%, with shares falling to 253.40 euros on Friday after closing at 260.70 euros the previous day. This correction follows the release on Wednesday of third-quarter results that exceeded analysts' expectations. Trading volumes remained low, with less than 0.1% of capital traded, indicating reduced liquidity at week's end.
Contrasting Weekly Performance with Long-Term Gains
Friday's decline in the flagship stock of the French defense sector contrasts with the positive momentum characterizing the stock over several months. Over seven days, Thales has shown a nearly stable performance of -0.16%, while the year-to-date gain stands at 66.66%, significantly outperforming the CAC 40, which has risen 9.71% over the same period. Over three months, the increase of 6.47% highlights a constructive trend only interrupted by this bearish closing session. This technical correction occurs in a context of subdued trading, with very limited volumes this Friday, October 24. The defense and aerospace sector generally performs well within the CAC 40 index, which ended the day nearly stable at 8225.63 points. Thales thus diverges from the general market movement, suggesting dynamics specific to the stock rather than a sector-wide pullback. The volatility measured over a month is set at 9.12%, indicating relative stability despite the day's movements.
Contextualizing the Latest Financial Results
The results announced on October 23 provide a major context for this last session of the week. In the first nine months of the year, Thales' revenue reached 15.26 billion euros in organic growth of 9.1%, surpassing the consensus of 15.13 billion. The commercial momentum is even more robust: order intake amounted to 16.76 billion, up 9% organically, against 15.72 billion expected by the market. The group confirms benefiting from remilitarization in the eurozone, with the defense segment growing by 14% over the nine months and the aerospace dynamics showing a growth of 6.9%. Orders received, exceeding the cumulative revenue by the end of September, enhance medium-term visibility. Thales also confirmed on Wednesday its targets for the fiscal year 2025: organic revenue growth between 6% and 7%, with an operating margin ranging from 12.2% to 12.4%. This confirmation of guidance, despite a tense geopolitical climate, provides assurance about the group's trajectory.
Technical Analysis Perspective
From a technical standpoint, the Relative Strength Index (RSI) at 42 reflects a neutral position trending towards weakness in the short term. The MACD oscillator shows a line at 2.37 versus a signal line at 3.54, generating a negative histogram of -1.17, indicating emerging selling pressure. However, the stock is trading above its two main moving averages, with the MM50 at 246.20 euros and the MM200 at 233.89 euros, thus both the upward support and medium-term benchmarks remain intact. The Bollinger Bands frame the movement with an upper threshold at 272.85 euros and a lower limit at 246.79 euros, outlining a range of more than 26 euros. The immediate technical support is established at 245.40 euros, while resistance is at 273.00 euros, allowing Thales some leeway of a few percent in either direction.
