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Dassault Systemes cuts 2024 earnings target on transaction delays




By Reuters | Updated: July 9, 2024

July 9 (Reuters) – French software company Dassault Systemes (DAST.PA) cut its full-year earnings target on Tuesday, saying its customers were being cautious with spending and were delaying the signing of contracts.

It now expects 2024 diluted earnings per share (EPS) growth in the range of 8% to 11% year-on-year, against a previous guidance for 10% to 12% growth.

CEO Pascal Daloz cited “large transaction delays” weighing on the group’s sales.

The company estimated its total revenue in the second quarter at around 1.50 billion euros ($1.62 billion), missing its own guidance of between 1.53 to 1.56 billion.

“Importantly, all deals that have been delayed are still in our roadmap for future quarters. However, we anticipate that a certain volatility in customers’ decision-making will continue and consequently believe it is prudent to reflect this in our full-year outlook,” he said.

Dassault, which sells software for car makers, plane makers and industrial companies, reported a mixed first quarter in April that sent its shares lower.

($1 = 0.9236 euros)

@ Thomson Reuters 2024

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