Sweden's Ambea Q3 sales rise on higher occupancy, operational improvements

By Reuters News


Overview

  • Sweden care provider's Q3 net sales rose 8% yr/yr to SEK 4,447 mln

  • Adjusted EPS for Q3 rose to SEK 4.86 from SEK 3.83 yr/yr

  • Company completed Humana acquisition after quarter end


Outlook

  • Company sees growing demand for care services across the Nordic region

  • Ambea expanding capacity to address anticipated future care needs

  • Company has started integrating Humana acquisition, aiming for operational synergies


Result Drivers

  • HIGHER OCCUPANCY - Co said increased occupancy rates across operations drove earnings growth

  • STAFFING EFFICIENCY - Co said improved staffing efficiency contributed to profitability, notably in Nytida and Stendi

  • ACQUISITIONS - Co said acquisitions, including Validia and Humana, supported growth and expansion


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Miss*

SEK 4.45 bln

SEK 4.49 bln (2 Analysts)

Q3 EBIT

SEK 619 mln

Q3 EBITA

SEK 645 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the healthcare facilities & services peer group is "buy."

  • Wall Street's median 12-month price target for Ambea publ AB is SEK216.50, about 16.6% above its November 3 closing price of SEK185.60

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 3 - LTC Properties Q3 revenue surges on SHOP acquisitions

  • Nov 3 - Omega Healthcare Investors Q3 AFFO rises, full-year guidance raised

  • Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase


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.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk