Sweden's Coor Q3 sales flat, margin improves
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
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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.)