Hong Kong-based power tools maker Techtronic Industries Co.’s 2022 profit missed estimates, a week after a short-seller report wiped about $4 billion off its market value.
(Bloomberg) — Hong Kong-based power tools maker Techtronic Industries Co.’s 2022 profit missed estimates, a week after a short-seller report wiped about $4 billion off its market value.
Net income totaled $1.08 billion last year, a 2% drop from 2021, while revenue edged up 0.4% to $13.25 billion, according to a Wednesday filing from the company, which was co-founded by German engineer Horst Julius Pudwill in 1990. Higher interest expenses led to the profit drop, Techtronic said.
Analysts tracked by Bloomberg had forecast net income of HK$1.15 billion on average and HK$13.78 billion revenue.
Techtronic shares tumbled 19% on Feb. 23, their biggest slump in over 14 years, after Jeoshaphat Research questioned the company’s accounting methods. Techtronic said last week it “vigorously denies all the allegations,” calling the report “defamatory, biased, selective, inaccurate and incomplete.” It echoed those comments in an 11-page filing Wednesday, when it also said it may take legal action.
The shares have risen 7.1% since Thursday’s close, but Techtronic’s market value is still almost $3 billion lower than before the short-seller report.
Among analysts tracked by Bloomberg, 18 out of 19 have buy ratings on the company and the other recommends to hold.
Techtronic said Wednesday it is “well positioned to outperform the market in 2023,” helped in part by prudent management of production and a stream of new products. “We remain highly confident in our ability to continue driving gross margin improvement,” it said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.