Norway's Norconsult Q3 profit falls

Overview

• Norway consulting firm's Q3 income after project costs rose 6%, with 1% organic growth

• Adjusted EBITA margin for Q3 rose to 9.8% from 9.3% last year

• Q3 net profit and EPS declined from a year earlier

Outlook

• Company did not provide specific financial guidance or outlook for the current or future periods in its press release

• Company expects overall market to remain stable but notes continued geopolitical uncertainty

• Norconsult expects stable demand in Infrastructure in line with public spending plans

• Company anticipates high activity in energy sector, with mixed trends in other industries

Result Drivers

• CALENDAR EFFECTS - Co said positive calendar effects contributed NOK 17 mln to income after external project costs

• ORGANIC GROWTH - Co reported 1% organic growth after adjusting for calendar effects

• AI INITIATIVES - Co said it made significant advances in use of AI across architecture, engineering and business activities

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Norconsult ASA is NOK44.50, about 15.3% above its November 2 closing price of NOK38.60

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)