Intertek Group (LSE:ITRK) dropped more than 4% on Tuesday after the UK-based testing and inspection firm reported third-quarter organic revenue growth that slightly lagged market forecasts, even as the company reaffirmed its full-year guidance.
For the July–October period, Intertek delivered 4.1% organic growth. That matched Morgan Stanley’s 4.2% estimate but fell short of the 4.5% Visible Alpha consensus, which the brokerage noted included “several stale estimates.”
The latest figure compares with 4.5% organic growth in the first half of 2025 and came in below the 6.3% and 6.0% posted by rivals Bureau Veritas and SGS, respectively, for their July–September quarters. Reported revenue rose 2.2%, held back by a -1.8% foreign-exchange impact.
Morgan Stanley characterized the update as “a decent print, but growth print and guide below peers; margins remain robust.”
Divisional performance varied. Consumer Products grew 5.4% in the quarter, consistent with full-year guidance calling for high-single-digit gains. Corporate Assurance advanced 6.6%, also in line with its high-single-digit target.
World of Energy was flat, with the note pointing to softness in transportation technologies, “(autos programmes being scaled back).”
Outlook for the division was revised to “Stable” from a prior expectation of low-single-digit growth. Industry & Infrastructure expanded 6%, prompting an upgrade of its full-year view to mid-single-digit growth, supported by stronger minerals demand. Health and Safety rose 0.8%, with guidance unchanged at low-single-digit growth.
Intertek maintained its full-year forecast for mid-single-digit organic revenue growth at constant currency, along with margin improvement and solid cash generation.
According to company-compiled consensus cited in the note, the market expects revenue of £3.43 billion, organic growth of 4.6%, EBIT of £611 million with a 17.8% margin, adjusted pretax profit of £564 million, and adjusted earnings per share of 250.5p.
Morgan Stanley said it anticipates organic growth projections to “trim slightly to c. 4.3%,” partially offset by a higher expected contribution from acquisitions of around 0.5%, versus the 0.2% reflected in current estimates.
The bank added that, with currency assumptions already set at a 3% decline for the year, it does not foresee changes to headline profit or earnings forecasts.
Leave a Reply