Sweden's SCA Q3 sales rise 5%, beat analyst estimates
Overview
Sweden forest products firm's Q3 sales rose 5% yr/yr, beating analyst expectations
EBITDA was nearly flat yr/yr, EBITDA margin declined slightly
Sales growth driven by higher delivery volumes, offset by lower prices and FX effects
Outlook
SCA says business environment remains challenging, company continues cost-control measures
Company expects high fuel prices to impact Forest and industrial segments, support Renewable Energy
SCA sees robust demand for packaging paper in Europe, driven by industry and e-commerce
Result Drivers
DELIVERY VOLUMES - Higher delivery volumes supported Q3 sales
MAINTENANCE COSTS - Lower cost of planned maintenance stops helped offset lower selling prices and FX effects
CONTAINERBOARD MARKET - Stronger market for containerboard and lower raw material costs supported earnings
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | SEK 5.25 bln | SEK 4.99 bln (9 Analysts) |
Q3 EBITDA | SEK 1.63 bln | ||
Q3 EBITDA Margin | 31.1% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
Wall Street's median 12-month price target for Svenska Cellulosa Aktiebolaget SCA is SEK125.00, about 0.6% below its October 22 closing price of SEK125.80
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 24 three months ago
Reuters Recommended Reads
Oct 22 - Finland's SRV Q3 revenue rises 28% year-on-year on higher volumes
Oct 23 - Sweden's Lifco Q3 sales rise 8.3%, pretax profit tops estimates
Oct 22 - Sweden's Essity slightly misses Q3 net sales estimates
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.)