Witted’s share price didn’t take off after the Q2 results or management’s comments; instead, the sideways trend continues despite decent growth.
I myself was expecting better profitability, so the result was a bit of a disappointment, even though it hit analyst estimates relatively well. Likewise, it was a bit disappointing that talk about the potential for profitability and its timeline was also scarce.
Of course, the Rule of 20 target for next year is still in place. But how realistic is it in the management’s opinion at this stage of the strategy period? Roughly what portion of that is growth?
There’s clearly a good vibe inside Witted, but as an outsider, I’m forced to rely heavily on my own back-of-the-envelope calculations and my gut feeling. I do have faith in a major earnings improvement, but the Q2 results made me question a bit what that faith is ultimately based on.