Sweden's Careium Q3 sales rise 21.6%, margin improves

Overview

• Sweden technology-enabled care provider's Q3 net sales rose 21.6% yr/yr

• Q3 operating margin improved to 10.3% from 6.7%

• Earnings per share for Q3 more than doubled yr/yr

Outlook

• Company says it will continue to invest in its offering and operational efficiency for growth

• Careium sees stable recurring revenues from multi-year service contracts supporting future visibility

• Company expects ongoing demand for home-based care solutions to support its market position

Result Drivers

• SERVICE SALES - Service sales rose 27.2% yr/yr, supported by new customer onboarding in the UK and Norway, according to CEO Tove Christiansson

• PRODUCT SALES - Product sales increased 9.3% yr/yr, with strong momentum for mobile alarms, per CEO Tove Christiansson

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 45.0% from 44.2%, attributed to growth in all markets

Company press release:

Key Details

Analyst Coverage

• 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 21 - Sweden's AddLife beats Q3 net sales expectations

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

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

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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.)