Sweden's Lifco Q3 sales rise 8.3%, pretax profit tops estimates

Overview

• Sweden industrial conglomerate's Q3 sales rose 8.3% yr/yr, slightly missing analyst expectations

• Pretax profit beat analyst expectations, rising 17.7% yr/yr

• Sales growth driven by acquisitions and organic expansion, especially in Transportation Products and Systems Solutions

Outlook

• Company expects lower Systems Solutions revenue and earnings in 2027 due to customer loss

• Lifco says it has financial capacity to pursue further acquisitions

Result Drivers

• ACQUISITIONS AND ORGANIC GROWTH - Co said Q3 sales growth was driven by acquisitions and organic expansion

• TRANSPORTATION PRODUCTS AND SYSTEMS SOLUTIONS - Co said acquisitions fueled sales growth in these segments

• DENTAL AND SYSTEMS SOLUTIONS PROFITABILITY - Co said improved profitability in Dental and Systems Solutions contributed to margin expansion

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 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

• Wall Street's median 12-month price target for Lifco AB (publ) is SEK352.00, about 10.4% above its October 22 closing price of SEK318.80

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• Oct 23 - Sweden's Storskogen Q3 sales rise 4%, EBITA up 6%

• Oct 23 - Sweden's Karnell Group Q3 EBITA jumps 73% on strong sales

• Oct 23 - Idun Industrial Q3 net sales rise on acquisitions

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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.)