Sweden's Trelleborg Q3 sales slightly miss estimates

Overview

• Sweden engineered polymer solutions provider's Q3 sales rose 8% yr/yr to record high, slightly missed analyst expectations

• Adjusted EPS for Q3 rose 23% yr/yr

• Company's EBITA margin improved to record 19.3% in Q3

Outlook

• Trelleborg expects Q4 demand to be on par with or slightly higher than Q3

• Company says geopolitical uncertainty continues to affect market outlook

• Company expects continued positive growth in infrastructure and marine project deliveries in Q4

Result Drivers

• MARKET POSITION & SEGMENT FOCUS - Co said strong market positions and focus on selected segments supported Q3 results

• EFFICIENCY & PRICING - Co said efficiency measures and selective price adjustments offset higher costs

• SEMICONDUCTOR DEMAND - Co said strong sales of polymer solutions to semiconductor industry in Asia drove growth in Sealing Solutions

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 "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Trelleborg AB (publ) is SEK470.00, about 5.3% above its October 22 closing price of SEK446.20

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

Reuters Recommended Reads

• Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth

• Oct 21 - Germany's Jenoptik raises FY EBITDA margin outlook on strong semiconductor equipment demand

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

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.)