Sweden's Bilia Q3 operational earnings rise on stable service business demand

By Reuters News


Overview

  • Sweden automotive retailer's Q3 net turnover rose slightly yr/yr

  • Operational earnings increased, driven by Sweden and Norway

  • Q3 profit and EPS declined due to prior-year property sale gain


Outlook

  • Company did not provide specific guidance or outlook for the coming quarters


Result Drivers

  • REGIONAL PERFORMANCE - Higher operational earnings in Sweden and Norway offset weaker results in Western Europe

  • MARGIN IMPROVEMENT - Operating margin rose to 3.3% from 2.9%

  • SEGMENT GAINS - Both Service Business and Car Business reported higher earnings and margins


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

SEK 9.96 bln

Q3 EPS

SEK 2.02

Q3 Net Income

SEK 185 mln

Q3 Adjusted Free Cash Flow

SEK 479 mln

Q3 Operating Profit

SEK 326 mln

Q3 Operational Earnings

SEK 380 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

  • Wall Street's median 12-month price target for Bilia AB is SEK167.50, about 16.9% above its October 22 closing price of SEK143.30

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 21 - Auto retailer Lithia & Driveway's Q3 results beat on demand for used vehicles

  • Oct 23 - Sweden's Volvo Cars Q3 revenue drops; plans job cuts

  • Oct 23 - Sweden's Volvo Q3 revenue rises 8%, but misses estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.