Sweden's Alligo Q3 revenue rises amid cautious market
Overview
Sweden-based workwear and tools supplier's Q3 revenue grew 4.9%, with organic growth of 1.1%
Adjusted EBITA for Q3 rose to SEK 168 mln, margin improved to 7.3%
Company says profit improved despite a cautious market
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Company says market remains somewhat cautious entering the next quarter
Company expects updated strategy to support long-term profitable growth
Result Drivers
CAUTIOUS MARKET - Co said market conditions were cautious during Q3, impacting organic growth
SALES MANAGEMENT - Co said ongoing improvements to sales management and prioritisation contributed to results
STRATEGY DEVELOPMENT - CEO said further development of strategy aims to improve customer relevance and support long-term growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | SEK 2.30 bln | SEK 2.33 bln (2 Analysts) |
Q3 Gross Margin | 41.10% | ||
Q3 Adjusted EBITA | SEK 168 mln | ||
Q3 Adjusted EBITA Margin | 7.30% | ||
Q3 EBIT | SEK 147 mln | ||
Q3 EBIT Margin | 6.40% | ||
Q3 Organic Growth | 1.10% |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "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 Alligo AB is SEK181.50, about 45.4% above its October 22 closing price of SEK124.80
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 23 - Sweden's Bufab Q3 sales rise 16.6% on market share gains
Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing
Oct 22 - MSC Industrial Q4 sales slightly beat on core customer growth
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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.)