Sweden's Invisio Q3 revenue misses estimates

Overview

• Sweden communications tech firm's Q3 revenue rose 40% yr/yr but missed analyst expectations

• Q3 EBITDA rose yr/yr but missed analyst expectations

• Company won multi-year Canadian Armed Forces contract worth up to SEK 450 mln

Outlook

• Company says market outlook remains favorable, supported by rising defense spending

• INVISIO expects continued demand due to modernization of defense capabilities

• Company awarded multi-year contract by Canadian Armed Forces, potential value up to SEK 450 mln

Result Drivers

• U.S. MARKET RECOVERY - Co said revenue growth was supported by a recovery in the U.S. market

• NEW PRODUCT DELIVERIES - Co said increased deliveries of new products contributed to revenue growth

• CANADIAN CONTRACT - Co awarded multi-year contract by Canadian Armed Forces, potential value up to SEK 450 mln

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Invisio AB is SEK340.00, about 32.7% above its October 29 closing price of SEK256.20

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 29 - Kongsberg Gruppen Q3 revenue beats estimates on defence demand

• Oct 29 - Finland's Bittium Q3 sales nearly double on strong growth in Defence & Security business

• Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand

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.)