Sweden's Peab Q3 sales rise on strength in all four business areas

Overview

• Sweden construction firm's Q3 net sales rose yr/yr, with operating profit and margin improving

• Q3 earnings per share increased to SEK 3.67 from SEK 3.01

• Orders received in Q3 declined compared to last year

Outlook

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

Result Drivers

• PROFITABILITY IMPROVEMENT - Co said operating profit and margin improved in all four business areas in Q3

• STRONG CASH FLOW - Co said strong cash flow contributed to a lower net debt/equity ratio, per CEO Jesper Göransson

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Peab AB is SEK110.00, about 13.8% above its October 27 closing price of SEK96.70

• 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 28 - Sweden's Netel Q3 net sales rise on infraservices, power segment

• Oct 27 - Poland's Budimex posts 7% rise in third-quarter profit on high contract throughput

• Oct 27 - Orion Group Holdings Q3 results beat estimates on concrete segment growth, acquisition of J.E. McAmis

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.)