The Atos share price has just broken the €75 support level and now appears to be heading towards the €69 threshold, its low point on June 11th. This decline seems to be influenced by the publication of mixed results this morning, including a declining operating margin in the first half of the year, which was not sufficiently supported by the announcement of two strategic acquisitions. Let's take a complete look at the situation of this stock.
The first piece of market impact data for Atos and which may explain part of the decline in the value of its share price on the stock market is the first half results published this morning. The Group recorded a normalized EPS of EUR 2.93 for the first 6 months of 2020 compared to EUR 3.21 in the first half of last year. The group's operating margin is 8% of sales and is down 110 basis points.
Over the first half of the year, the IT services group's revenues totalled 5,627 million euros, down 2.8% at constant exchange rates, or -4.8% in the second quarter. The order intake to revenue ratio was 112%.
The Group also confirmed this morning its objectives for the year 2020 with an organic sales evolution of -2 to -4% and an operating margin of 9 to 9.5% of sales. Free cash flow is expected to reach between 0.5 and 0.6 billion euros.
Also on the morning of 27th July 2020, Atos Group also announced two forthcoming strategic acquisitions. The first concerns ongoing negotiations for the acquisition of digital.security. This subsidiary of Econocom will thus consolidate Atos' leading position in cybersecurity services in France with its 500 dedicated experts and will reinforce its position as European leader. Indeed, digital.security has created the very first European CERT and offers a wide range of services to leading clients in the finance and insurance sectors. The transaction is expected to be finalised by the end of the year after submission to the staff representative bodies of both parties.
The second announcement concerns the signing of an agreement to acquire EcoAct, a consulting firm specialising in CO2 emission reduction strategies and serving more than 400 clients through four international offices. This acquisition will support Atos' ambition in terms of decabronization and will enrich its portfolio of digital solutions, services and strategies, with the aim of supporting its clients at every stage of their journey towards zero carbon. The company, based in France, currently employs 150 people and climate experts around the world. The transaction is expected to close in the second half of 2020.