Dustin Group's Q4 revenue misses on subdued demand

Overview

• Sweden IT reseller's Q4 revenue fell 4.8%, missing analyst expectations

• Adjusted EBITA for Q4 beat analyst estimates despite lower sales

• Company says Q4 sales decline due to order timing and subdued demand from higher prices

Outlook

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

Result Drivers

• ORDER TIMING - Co said Q4 sales declined partly because orders were brought forward to the previous quarter

• SUBDUED DEMAND - Co said demand was subdued in Q4 due to higher price levels

• EFFICIENCY MEASURES - Co said profitability improved mainly due to a lower cost base after efficiency measures, per CEO Samuel Skott

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy."

• Wall Street's median 12-month price target for Dustin Group AB is SEK2.03, about 14.5% above its October 13 closing price of SEK1.77

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 12 - Swedish industrial tech firm Karnell's prelim Q3 sales jump amid strong demand

• Oct 12 - Sweden's Telia to cut around 900 jobs and save $100 million

• Oct 14 - Sweden's Avarda Bank Q3 loans climb 20%, profit up 29%

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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.)