Geberit Earnings: Full-Year Guidance Raised Following an Impressive Performance

Wide-moat Geberit delivered a strong third quarter, beating company-compiled consensus and raising its full-year guidance. Its EBITDA margin guidance for the full-year was raised to 29.5% from 29.0%, which we still believe appears to be somewhat conservative. Geberit’s ability to improve its EBITDA margin by 40 basis points to 31% during the third quarter, even in a challenging macroeconomic environment, demonstrates the group's strong pricing and ability to take market share from smaller peers. Shares are trading 6% higher intraday and screen as fairly valued to our CHF 510 fair value estimate, which we maintain.