Sweden's Hexagon Q3 sales beat estimates broad-based growth

Overview

• Sweden measurement tech firm's Q3 sales grew 13% organically to 1.05 bln EUR, beating analyst expectations

• Adjusted EPS for Q3 rose to 8.2 euro cent

• Company growth driven by demand for precision measurement and autonomous solutions

Outlook

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

Result Drivers

• ORGANIC GROWTH - Co reported 13% organic sales growth in Q3

• GROSS MARGIN - Co reported gross margin of 61.6%, down from 63.7% in prior yr

• RECURRING REVENUE - Co recurring revenue grew 3% organically in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for Hexagon AB is SEK106.00, about 3.9% above its October 22 closing price of SEK102.05

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's Atlas Copco Q3 revenue slightly beats estimates, orders up 29%

• Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth

• Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

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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.)