Sweden's Sandvik Q3 revenue beats estimates on order growth

Overview

• Sweden industrial tech group's Q3 revenue rose 26% and beat analyst expectations

• Adjusted EBIT for Q3 beat analyst expectations

• Order intake grew 17% yr/yr at fixed exchange rates

Outlook

• Sandvik did not provide specific guidance for future quarters or the full year in the press release

Result Drivers

• ORDER GROWTH - Sandvik said order intake rose 17% yr/yr at fixed exchange rates, supporting revenue growth

• ORGANIC REVENUE GROWTH - Co reported organic revenue growth of 25% at fixed exchange rates

• MARGIN IMPROVEMENT - Adjusted EBITA margin increased to 22.5% from 19.0%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the mining support services & equipment peer group is "buy."

• Wall Street's median 12-month price target for Sandvik AB is SEK410.00, about 15.8% above its October 21 closing price of SEK354.00

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 21 - Bearings maker SKF's profit slightly ahead of expectation, sees very volatile markets

• Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates

• Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

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.)