In the third quarter of 2023, WEG
presented positive performance, standing out for its operating margins and return on invested capital. The good performance was driven by the demand for long cycle products, particularly in the area of Energy Generation, Transmission and Distribution (GTD) . However, the reduction in revenues from distributed solar generation in Brazil and the appreciation of the Real against the dollar affected revenue growth in the domestic market . The company continued to grow in the foreign market, notably in the Transmission & Distribution (T&D) segment.
Why did WEG shares fall more than 9%?
However, the market reacted badly to the numbers, dropping 9%. It seems to me that in a company that expects double-digit growth, a result can never be given in a "slightly positive" way.