Atos CEO’s Profit Warning Shocker: Five Things To Know
New Atos CEO Rodolphe Belmer issued a profit warning Monday that led to a 16.8 percent drop in the company’s per-share price to 32.10. Atos stock fell to a 52-week low of 31.26 euros per share today in early trading, down almost 19 percent from its previous close of 38.59 euros per share. Here are five things you need to know about the profit slide that was an unwelcome surprise for the new CEO.
New “Financial Insight”
Atos CEO Rodolphe Belmer – who was appointed last October to lead a transformation of the company- says the fiscal issues that led to a profit warning this week came to light last week as the latest financial figures were being collected and consolidated for the IT outsourcing provider .
“The current state of financial insight leads us to the obligation to issue a profit warning today due to the significant variance in the financial KPIs (key performance indicators),” said Belmer in a prepared statement that sent the company’s shares plummeting 16.8 percent.
Among the myriad of issues that led the IT outsourcing behemoth to report a 2.4 percent decrease to 10.8 billion euros ($12.2 billion) in revenue for 2021: a major revision in the completion of a business process outsourcing contract for a large United Kingdom financial institution; project slippages for big data/high performance computing and unified communications collaboration projects; supply chain challenges; reduced low margin hardware and software resale; and delays in finalizing agreements with several large customers.
Belmer, who was tapped as the new CEO of Atos last October but did not start the job until last week, is promising a “swift turnaround” with a plan that he will present to the company’s board of directors in February. Here are four things you need to know about the IT outsourcing provider’s financial shortfall and stock slide.