Sweden's RaySearch Q3 sales rise on higher order intake

Overview

• Sweden oncology software firm's Q3 net sales rose 19% yr/yr, order intake up 30%

• Operating profit fell 5% as higher hardware sales weighed on margin

• Company repurchased SEK 58 mln in treasury shares to create shareholder value

Outlook

• RaySearch expects remaining license revenue from Accuray order to be recognized in Q4 2026

• Company maintains operating margin target of at least 25% for 2026

• RaySearch sees good prospects for a strong finish to the year

Result Drivers

• STRONG US DEMAND - Co said increased demand in the USA contributed significantly to sales growth

• PROTON AND PHOTON THERAPY SALES - Co said high demand for software for proton and photon therapy supported order intake and revenue

• HARDWARE SALES IMPACT - Co said a higher share of hardware sales in the quarter reduced gross margin and profitability

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for RaySearch Laboratories AB (publ) is SEK297.50, about 51% above its November 2 closing price of SEK197.00

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Nov 2 - Swedish 3D printer maker Freemelt's prelim Q3 sales fall

• Nov 2 - Finnish soundproof office pod maker Framery's Q3 boosted by N.America demand

• Nov 3 - Sweden's ITAB Group Q3 profit falls on one-off costs

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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.)