Vestas Wind Systems stock slumps as company says margins
- •They're citing elevated costs and project delays, which sounds all too familiar in this current economic climate, doesn't it?
- •But seeing this kind of guidance definitely makes me pump the brakes.
- •What are your thoughts on this?
Hey everyone, just saw this pop up on MarketWatch and wanted to share: Vestas Wind Systems stock slumps as company says margins to be at low end of guidance. It's about Vestas basically saying their full-year margins are going to be on the low end of their range (0-3%), which is obviously not great news for shareholders. They're citing elevated costs and project delays, which sounds all too familiar in this current economic climate, doesn't it?
My first thought was, man, even in a sector that's supposed to be booming like renewables, these supply chain and inflation issues are just relentless. I've been eyeing Vestas for a while, thinking about adding some clean energy exposure to my portfolio – especially with my wife's push for more ESG-friendly investments for our retirement fund. But seeing this kind of guidance definitely makes me pump the brakes. I mean, 0-3% margins for a company of that size… it just doesn't scream "strong buy" right now, even if the long-term outlook for wind power is solid. It reminds me a bit of some of the growing pains I saw in solar a few years back where the potential was there, but execution and costs were a constant battle.
What are your thoughts on this? Anyone here holding Vestas or thinking about it? Do you see this as a temporary blip due to external factors, or is it a sign of deeper operational issues? I'm curious to hear if anyone thinks this dip might actually be an opportunity to get in at a lower price if they can turn things around next year. Let me know what you think!