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Investing.com -- Hexagon reported an unexpected 3% increase in fourth-quarter operating profit on Friday, supported by a rebound in organic growth and rising recurring revenues in some business units, despite a challenging market environment.

Shares in the industrial technology firm soared 7% in European trading.

The company, which specializes in measurement and positioning systems, posted adjusted earnings before interest and taxes (EBIT) of 450.3 million euros ($468.2 million) for the December quarter. This surpassed analyst expectations of 427 million euros, based on a company-provided consensus, which had anticipated a decline.

The company attributed its strong performance to its Asset Lifecycle Intelligence unit, which offers software solutions for industrial facility management, and its Safety, Infrastructure & Geospatial division, which focuses on public safety solutions.

"In the fourth quarter we recorded a return to positive organic growth, while maintaining EBIT margins and generating a very strong cash conversion, despite difficult macroeconomic conditions," interim CEO Norbert Hanke said in a statement.

Hexagon reported a 1% rise in organic revenue for the quarter, while recurring revenue increased by 7%.

Cash conversion reached 116%, improving from 103% a year earlier. However, the company noted that market conditions remained tough, particularly in the automotive and construction industries, and does not expect significant changes in the first quarter of 2025.

In October, Hexagon announced plans to separate its Asset Lifecycle Intelligence unit and related businesses. The company stated that it is still evaluating the process and will provide an update in the first quarter of the year.

Moreover, Hexagon proposed a dividend of 0.14 euros per share for 2024, representing an 8% increase compared to the previous year.

Morgan Stanley (NYSE:MS) analysts note that at current levels, Hexagon stock is trading at approximately 23.5 times the estimated free cash flow for fiscal year 2026. They describe this as "a relatively 'full' valuation given the business' pure software exposure remains <50% of the pie.”

“We see better value elsewhere in our software coverage, at the likes of Sage,” they added.

Investing.com -- Salvatore Ferragamo (BIT:SFER) shares on Friday surged over 10% after reporting fourth-quarter 2024 sales that came in largely in line with expectations, making it the first luxury brand this earnings season to miss consensus topline estimates.

The Italian luxury group posted revenue of €291 million for the quarter, reflecting a 4% year-on-year decline at constant exchange rates. The result was only marginally better than market forecasts of €290 million and a projected 4.9% drop.

Ferragamo shares traded 10.2% higher at 8.02 euros on Friday.

Ferragamo's sales continue to decline overall, indicating ongoing challenges. However, there was a small improvement compared to the last quarter, which saw a 7.2% drop.

The company’s direct-to-consumer business, a key driver of growth, showed a modest turnaround, rising 0.9% year-on-year in Q4 after a 5.7% decline in Q3.

Strength in Europe, North America, Japan, and Latin America helped offset ongoing weakness in the Asia-Pacific region.

Within the DTC segment, the company’s primary retail channel saw a 3% rise, fueled by strong sales in handbags and footwear, while its secondary retail business remained under pressure.

The wholesale division, however, continued to struggle, with sales falling 19.3% in the quarter, a sharper decline than the 12.8% drop seen in Q3.

Weak demand in Asian markets, as well as sluggish travel retail, weighed on performance. Additionally, Ferragamo cited differences in delivery timing compared to the previous year as a contributing factor.

“We expect very limited changes to consensus numbers off the back of tonight's in-line sales,” said analysts at Morgan Stanley (NYSE:MS) in a note.

Regionally, Europe posted a 4.5% increase in sales for the quarter, improving from the 1.2% growth recorded in Q3.

The North American market also rebounded, growing 6.3% after a steep 7.9% decline in the prior quarter.

Latin America delivered the strongest regional performance, with sales rising 10.7% year-on-year, supported by strong demand for shoes, handbags, and leather goods.

In contrast, Asia-Pacific continued to lag, with sales tumbling 24.8%, marking a further slowdown from Q3’s 20.5% decline.

While the company noted a slight sequential improvement in the DTC business in the region, it described market conditions as volatile.

Meanwhile, Japan saw a modest 1.2% increase, though growth in the region slowed compared to the previous quarter.

Ferragamo reported a positive start to 2025, with increased direct-to-consumer sales in January.

However, Morgan Stanley analysts remain cautious, observing that while new collections are well-received, there's no clear sign of significant brand momentum.

“Our recent luxury channel checks (Jan 2025) pointed to a continued lack of brand momentum at Ferragamo, despite admirable collections, with anecdotal feedback describing a marketing push that a number of contacts felt missed the mark; this suggests potential for a turnaround should the company succeed with marketing and social media,” Morgan Stanley added.

Investing.com -- Salvatore Ferragamo (BIT:SFER) on Friday reported fourth-quarter 2024 sales that came in largely in line with expectations, making it the first luxury brand this earnings season to miss consensus topline estimates.

The Italian luxury group posted revenue of €291 million for the quarter, reflecting a 4% year-on-year decline at constant exchange rates. The result was only marginally better than market forecasts of €290 million and a projected 4.9% drop.

Ferragamo's sales continue to decline overall, indicating ongoing challenges. However, there was a small improvement compared to the last quarter, which saw a 7.2% drop.

The company’s direct-to-consumer business, a key driver of growth, showed a modest turnaround, rising 0.9% year-on-year in Q4 after a 5.7% decline in Q3.

Strength in Europe, North America, Japan, and Latin America helped offset ongoing weakness in the Asia-Pacific region.

Within the DTC segment, the company’s primary retail channel saw a 3% rise, fueled by strong sales in handbags and footwear, while its secondary retail business remained under pressure.

The wholesale division, however, continued to struggle, with sales falling 19.3% in the quarter, a sharper decline than the 12.8% drop seen in Q3.

Weak demand in Asian markets, as well as sluggish travel retail, weighed on performance. Additionally, Ferragamo cited differences in delivery timing compared to the previous year as a contributing factor.

“We expect very limited changes to consensus numbers off the back of tonight's in-line sales,” said analysts at Morgan Stanley (NYSE:MS) in a note.

Regionally, Europe posted a 4.5% increase in sales for the quarter, improving from the 1.2% growth recorded in Q3.

The North American market also rebounded, growing 6.3% after a steep 7.9% decline in the prior quarter.

Latin America delivered the strongest regional performance, with sales rising 10.7% year-on-year, supported by strong demand for shoes, handbags, and leather goods.

In contrast, Asia-Pacific continued to lag, with sales tumbling 24.8%, marking a further slowdown from Q3’s 20.5% decline.

While the company noted a slight sequential improvement in the DTC business in the region, it described market conditions as volatile.

Meanwhile, Japan saw a modest 1.2% increase, though growth in the region slowed compared to the previous quarter.

Ferragamo reported a positive start to 2025, with increased direct-to-consumer sales in January.

However, Morgan Stanley analysts remain cautious, observing that while new collections are well-received, there's no clear sign of significant brand momentum.

“Our recent luxury channel checks (Jan 2025) pointed to a continued lack of brand momentum at Ferragamo, despite admirable collections, with anecdotal feedback describing a marketing push that a number of contacts felt missed the mark; this suggests potential for a turnaround should the company succeed with marketing and social media,” Morgan Stanley added.