Sweden's AFRY beats Q3 sales estimates on strong order backlog

Overview

• Sweden engineering consultancy's Q3 net sales rose 1.9%, beating analyst expectations

• Adjusted EBITA for Q3 beat analyst expectations; EBITA margin improved to 6.8%

• Order backlog at end of Q3 increased to SEK 22.1 bln from SEK 20.4 bln

Outlook

• AFRY says it remains focused on driving organic growth and sustainable profitability uplift

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• UTILIZATION RATE - Co said improved utilization rate contributed to stable results in Q3

• ORDER BACKLOG - Co highlighted a strong order backlog at end of Q3 as supporting results

• OPERATIONAL IMPROVEMENTS - Co said operational improvements over the past year helped drive EBITA margin gains

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "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 Afry AB is SEK115.50, about 11.4% above its October 21 closing price of SEK103.70

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates

• Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

• Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations

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.)