TomTom NV (TOM2), Europe’s largest maker of portable navigation devices, rose the most in six weeks in Amsterdam trading after sticking to its sales forecast and signing a supply deal with French automaker PSA Peugeot Citroen. (UG)
TomTom gained as much as 11 percent to 3.30 euros at 10:52 a.m., the biggest intraday gain since June 12. The stock has risen 8 percent this year, valuing the company at 731 million euros ($886 million).
Revenue this year will total about 1.1 billion euros, and earnings per share will amount to 35 cents, Amsterdam-based TomTom said today in a statement, reiterating a forecast from April. The Dutch company will provide Paris-based Peugeot, Europe’s second-biggest carmaker, with location and navigation technology for its vehicles’ entertainment systems, TomTom said in a separate statement.
“The contract win confirms TomTom’s strong position in European in-dash navigation market,” and the company reaffirmed its forecasts “despite weak consumer markets,” Niels de Zwart, an Amsterdam-based analyst at ING Groep NV (INGA) with a “hold” recommendation on the stock, said in a note today.
Second-quarter net income amounted to 8.9 million euros, beating the average analyst estimate of 6.4 million euros.
Last month, TomTom signed a global agreement with Apple Inc. (AAPL:US) for the use of digital maps in new mobile services. Revenue from that deal will start to come through next year, Chief Executive Officer Harold Goddijn today said on a conference call.
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