Sweden's Coor Q3 sales flat, margin improves

Overview

• Sweden facility management firm's Q3 sales were flat, with organic growth at -1.5%

• Adjusted EBITA rose year-over-year, with operating margin improving to 5.0%

• Net income and EPS were little changed from a year earlier

Outlook

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

Result Drivers

• NEGATIVE ORGANIC GROWTH - Co said organic growth declined 1.5% in Q3, with no contribution from acquisitions

• MARGIN IMPROVEMENT - Co attributed higher adjusted EBITA and margin to improved operational efficiency

• LOWER CASH CONVERSION - Co reported cash conversion declined to 87% from 96% over the past 12 months

Company press release:

Key Details

*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 2 "strong buy" or "buy", no "hold" and no "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 Coor Service Management Holding AB is SEK70.00, about 40.4% above its October 21 closing price of SEK49.86

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 21 - Nederman Q3 profit, margin decline as sales fall

• Oct 21 - Sweden's BE Group Q3 net sales rise 13%

• Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

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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.)