Norway's Tomra Systems Q3 revenue rises on growth across all divisions

Overview

• Norway recycling technology firm's Q3 revenue rose 20% yr/yr, driven by growth in all divisions

• Adjusted EPS for Q3 rose 72% yr/yr to 0.08 EUR

• Gross margin declined to 43% from 44.1%, mainly due to business mix in Collection

Outlook

• Company says overall market sentiment in Recycling remains broadly unchanged

• TOMRA expects resilience in Food segment due to broad exposure and healthy pipeline

• Company sees ongoing modernization and replacement cycles supporting recurring revenues in Collection

Result Drivers

• COLLECTION GROWTH - Revenue in Collection rose 21%, with 19% growth in existing markets and contributions from new markets including Poland, Singapore and Romania

• RECYCLING ORDERS - Recycling revenue increased 34% and order intake rose 73%, supported by exceptionally large Mining orders and higher volumes

• FOOD SEGMENT DIVERSIFICATION - Food revenue grew 13% as gains in categories like citrus, blueberries and vegetables offset weaker potato demand

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Tomra Systems ASA is NOK127.50, about 36.9% above its October 22 closing price of NOK93.10

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 22 - Finland's Metso Q3 orders jump as mining demand lifts minerals segment

• Oct 22 - Norway's Kitron Q3 revenue beats estimates on defence demand

• Oct 22 - Sweden's Atlas Copco Q3 revenue slightly beats estimates, orders 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.)