Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

Overview

• Sweden industrial group Q3 net sales rose 13% yr/yr, slightly missing analyst expectations

• Q3 EBITA rose 19% and slightly beat analyst expectations

• Order intake grew 16% yr/yr, with strongest gains in medical, energy and engineering segments

Outlook

• Company says strong order backlog and acquisitions support outlook for coming quarters

• Company notes ongoing economic uncertainty mainly due to geopolitical situation

• Company says energy investments in Europe contribute to order backlog, with long project lead times

Result Drivers

• SEGMENT DEMAND - Co said order intake growth was strongest in medical technology, pharmaceuticals, energy and engineering segments

• ACQUISITIONS - Acquisitions contributed 8% to net sales growth in the quarter

• PRICING AND ORGANIC GROWTH - Margin improvement attributed to organic sales growth and successful pricing efforts

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 "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Indutrade AB is SEK280.00, about 8.3% above its October 22 closing price of SEK258.60

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 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 22 - Finland's Metso Q3 orders jump as mining demand lifts minerals segment

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.)