Sweden's Coor Q3 sales flat, margin improves

By Reuters News


Overview

  • Sweden facility management firm's Q3 sales were flat, with organic growth at -1.5%

  • Adjusted EBITA rose year-over-year, with operating margin improving to 5.0%

  • Net income and EPS were little changed from a year earlier


Outlook

  • Company did not provide specific guidance for future quarters or the full year in its press release


Result Drivers

  • NEGATIVE ORGANIC GROWTH - Co said organic growth declined 1.5% in Q3, with no contribution from acquisitions

  • MARGIN IMPROVEMENT - Co attributed higher adjusted EBITA and margin to improved operational efficiency

  • LOWER CASH CONVERSION - Co reported cash conversion declined to 87% from 96% over the past 12 months


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Miss*

SEK 3.007 bln

SEK 3.01 bln (2 Analysts)

Q3 EPS

SEK 0.50

Q3 Net Income

SEK 48 mln

Q3 Adjusted EBITA

Beat

SEK 149 mln

SEK 124 mln (2 Analysts)

Q3 EBIT

SEK 101 mln

Q3 Organic Growth

-1.50%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for Coor Service Management Holding AB is SEK70.00, about 40.4% above its October 21 closing price of SEK49.86

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 21 - Nederman Q3 profit, margin decline as sales fall

  • Oct 21 - Sweden's BE Group Q3 net sales rise 13%

  • Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric


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.)

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