Quick market observation: Atento S.A. (NYSE: ATTO)
On 02 April 2020, Atento S.A. (NYSE: ATTO) stock identified change of 10.00% away from 52-week low price and recently located move of -75.52% off 52-week high price. ATTO stock has been recorded -57.16% away from 50 day moving average and -61.39% away from 200 day moving average. Moving closer, we can see that shares have been trading -33.03% off 20-day moving average.
Atento S.A. (ATTO) recently reported its fourth-quarter and full-year operating and financial results for the period ending December 31, 2019. All comparisons in this announcement are year-over-year (YoY) and in constant-currency (CCY), unless noted otherwise, and may differ from the 6-KBecause of certain intra-group eliminations.
Fourth Quarter and Full-Year Consolidated Operating Results
Consolidated revenue increased 4.8% to $417.2M in the fourth quarter of 2019, with Multisector sales up 13.9% growing across all regions, while Telefónica revenue reduced 12.3%, reflecting the decision to return programs that are not aligned with the company’s long-term strategy. In Brazil, total revenue declined 1.2%, influenced by returned Telefónica programs, while Multisector sales grew 6.3%, mainly among born-digital and healthcare clients. Multisector sales in the Americas increased 27.3% on higher volumes in both existing and new contracts, while EMEA Multisector sales rose 9.8%, reflecting higher volumes in new programs purchased from existing clients during the year. Fourth quarter Telefónica sales reduced 12.3%, reflecting a 19.0% decline in Brazil from the returned programs, and also lower volumes in Peru, Chile and Spain, which led to a 7.6% decrease in the Americas and an 8.8% decline in EMEA.
For the year ended December 31, 2019, consolidated revenue increased 2.1%, in line with guidance, to $1,707.3M, with Multisector sales up 7.5%, further diversifying revenue and accounting for 64.7% of yearly sales, a 370 basis point expansion of share. Revenues from Telefónica reduced 6.4%. By region, Brazil revenue grew 2.1%, while Americas and EMEA revenues increased 2.8% and 2.0%, respectively.
In the fourth quarter of 2019, stated EBITDA reduced 41.1% YoY to $20.7M and included (i) negative $11.6M of extraordinary items related to the transformation plan, (ii) a non-cash $30.9M impairment charge to Goodwill in Argentina, related to the economic crisis and hyperinflation in that country and (iii) a $17.9M positive effect related to IFRS16. The normalized EBITDA margin reduced 40 basis points to 10.9%, Because of lower Telefónica volumes, mainly in Peru, Chile and EMEA. In Brazil, the Americas and EMEA, normalized adjusted EBITDA margin was 14.4%, 9.0% and 7.6%, respectively.
For full-year 2019, stated EBITDA reduced 9.9% to $153.4M, and includes the $30.9M impairment in Argentina. Not Including this effect, EBITDA margin was 10.8%, slightly below the guidance of 11.0% to 12.0%. This result reflects a very difficult first half of 2019, including less profitable programs with telcos (that were discontinued in the second half of the year) in addition to $29.7M in extraordinary items related to the transformation plan.
Stated earnings per share was negative $0.42 in the fourth quarter of 2019, with recurring EPS of positive $0.21 when not including the aforementioned extraordinary items and impairment charge in Argentina. For the year, stated EPS was negative $1.11 and includes $0.51 from tax settlement in Spain, while recurring EPS was positive $0.22 when not including the extraordinary items related to the transformation plan and the impairment in Argentina.
Brazil
Revenue at Atento’s flagship operation reduced 1.2% to $194.8M in the fourth quarter of 2019. Born-digital and healthcare clients primarily drove Multisector sales 6.3% higher during the quarter and 2.8% sequentially, while returned programs resulted in an 19.0% decrease in Telefónica revenue. These verticals also accounted for a 6.4% increase in full-year Multisector revenue, representing 72.6% of total revenue, a 290 basis-point year-over-year expansion. This increase was partially offset by a 7.7% decline in yearly Telefónica revenue, Because of the returned programs. For the year, revenue increased 2.1%.
Stated Adjusted EBITDA was $29.8M, up 7.9% versus fourth quarter 2018, while the corresponding margin was 15.3%. Not Including the effects of IFRS16 and extraordinary items, the normalized adjusted EBITDA margin was 14.4%, up 50 basis points Because of higher margins with born-digital and healthcare clients.
For the year, the normalized Adjusted EBITDA margin was 11.1%, 20 basis points below the 2018 margin, Because of lower margin programs with telco programs during the first six months of the year. The return of these programs is predictable to contribute ~100 basis points in Adjusted EBITDA margin in 2020.
Atento S.A. noticed change of 8.49% to $0.99 along volume of 20997 shares in recent session compared to an average volume of 105.69K. ATTO’s shares are at -66.89% for the quarter and driving a -74.15% return over the course of the past year and is now at -65.63% since this point in 2018. The average volatility for the week at 15.85% and for month was at 18.36%.
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My Name is Ronald Hemphill and I am also the main source from the ‘Journalnewsbulletin.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.
