Sweden's Epiroc Q3 revenue up 10% on mining demand

Overview

• Sweden mining equipment maker's Q3 orders received grew 15% yr/yr, driven by strong mining demand

• Q3 revenue rose 10% yr/yr but missed analyst expectations

• Q3 EBIT grew 22% yr/yr but missed analyst expectations

Outlook

• Epiroc expects near-term mining demand to remain high and infrastructure demand to stay stable

Result Drivers

• MINING DEMAND - Co said strong mining demand drove order growth, with mining customers accounting for 83% of orders

• UNDERGROUND EQUIPMENT - Strong demand for underground equipment and diesel-electric solutions supported equipment order growth

• SERVICE AND DIGITAL - Service growth was driven by mid-life upgrades and digital solutions for automation and safety

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Epiroc AB is SEK290.00, about 15.1% above its October 27 closing price of SEK252.00

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake

• Oct 27 - Switzerland's Bucher Industries 9-month sales dip, orders fall on weak demand

• Oct 28 - Traton's nine-month operating profit rises 13% on volume, pricing and product mix

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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.)