Scandic Hotels Q3 sales meet estimates on strong demand; expects higher occupancy, rates in Q4
Overview
Sweden-based hospitality group's Q3 net sales rose 7.9%, meeting analyst expectations
Adjusted EPS for Q3 rose yr/yr
Company completed Dalata hotel operations acquisition after quarter-end, expanding European presence
Outlook
Company sees higher occupancy and room rates in Q4, given solid demand for business travel, meetings and conferences
Scandic plans to pursue growth in more markets following Dalata acquisition
Result Drivers
STRONG DEMAND AND EVENTS - Higher occupancy and increased room rates driven by strong demand and a busy event calendar, per CEO
SWEDEN PERFORMANCE - Record quarter in Sweden attributed to concerts, major conferences and operational efficiency, per CEO
REGIONAL VARIATION - Norway saw strong growth despite earlier strike impact; Finland market stabilized with modest improvement, per CEO
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Meet | SEK 6.88 bln | SEK 6.88 bln (3 Analysts) |
Q3 Adjusted EPS | SEK 3.86 | ||
Q3 Adjusted EBITDA | Beat | SEK 1.33 bln | SEK 1.24 bln (2 Analysts) |
Q3 Free Cash Flow | SEK 945 mln | ||
Q3 Organic Growth | 4.50% | ||
Q3 RevPAR | SEK 1,030 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."
Wall Street's median 12-month price target for Scandic Hotels Group AB is SEK99.50, about 6.4% below its November 9 closing price of SEK106.30
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
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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.)