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Adecco Q3 revenue, profit rise on US demand

By Reuters News


Overview

  • Switzerland staffing firm's Q3 revenue rose 4% yr/yr, organic growth 3.7%

  • Adjusted EBITA for Q3 rose 10% organically

  • Basic EPS for Q3 rose 23% yr/yr


Outlook

  • Adecco targets net debt/EBITDA at or below 1.5x by end-2027

  • Company expects EUR 75 mln in additional annual run-rate savings by Q3 2027

  • Company sees continued growth momentum and further deleveraging


Result Drivers

  • ORGANIC REVENUE GROWTH - Q3 revenue rose 3.7% organically, led by strong growth in the Americas and EMEA excl. France

  • MARGIN MANAGEMENT - Gross margin was 18.9%, with improvement attributed to business mix and firm pricing

  • OPERATING LEVERAGE - EBITA margin rose 20 bps year-on-year, reflecting strong operating leverage and disciplined capacity management


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

EUR 6 bln

Q3 Gross Margin

18.90%

Q3 Adjusted EBITA

EUR 213 mln

Q3 Adjusted EBITA Margin

3.60%

Q3 Basic EPS

EUR 0.65

Q3 Operating Income

EUR 180 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the employment services peer group is "buy."

  • Wall Street's median 12-month price target for Adecco Group AG is CHF25.50, about 11.8% above its November 11 closing price of CHF22.80

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 10 - Switzerland's On Holding Q3 net sales rise 17%, slightly beat estimates

  • Nov 10 - Switzerland's Alcon Q3 sales slightly miss estimates despite surgical equipment launches, vision care growth

  • Nov 10 - Canada's Hydro One Q3 revenue rises, EPS edges down


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.)

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