By Adam Whittaker
Sodexo shares fell after the company's first-quarter revenue missed consensus expectations.
In early morning European trade, shares were down 7.5% at 73.25 euros but remain up 5.2% over the past 12 months.
The French catering and food service company reported Tuesday 6.40 billion euros ($6.65 billion) in revenue for the first quarter, below a company-compiled consensus of 6.50 billion euros.
Organic revenue growth also missed expectations, at 4.6% on year compared with consensus expectations of 5.3%.
Sodexo's European division dragged its performance after losing contracts last year and seeing a downturn in project work, Bernstein analyst Sabrina Blanc wrote in a research note.
European organic growth was only 2%, compared with a Sodexo-compiled consensus of 4.9%, Blanc wrote.
Despite its first-quarter consensus miss, Sodexo confirmed its full-year guidance for 2025, and said it continues to expect organic revenue growth between 5.5% and 6.5%.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
January 07, 2025 04:08 ET (09:08 GMT)
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