Norway's Veidekke beats Q3 revenue estimates on higher activity, utilisation

Overview

• Norway contractor's Q3 revenue rose 11% yr/yr, beating analyst expectations

• Q3 pre-tax profit increased yr/yr, driven by higher activity and capacity utilisation

• Quarterly order intake and order book both grew from a year ago

Outlook

• Company says orders to be executed in next 12 months are 14% higher year-on-year

• Veidekke says order book remains at a high level, supporting future activity

Result Drivers

• INCREASED ACTIVITY - Co said higher activity levels across all operations contributed to revenue and profit growth

• CAPACITY UTILISATION - Improved capacity utilisation, especially in Norway, drove profit improvement, per CEO Jimmy Bengtsson

• ORDER INTAKE - Robust order intake of NOK 8.3 bln supported a high order book and future activity, according to CEO

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 Veidekke ASA is NOK215.00, about 3.6% below its November 11 closing price of NOK223.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 11 - Canada's Bird Construction Q3 results beat estimates on growth across business segments

• Nov 11 - Germany's Bilfinger Q3 orders jump 25%, revenue slips

• Nov 11 - Tetra Tech Q4 revenue beats estimates on contract wins

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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.)