Sweden's Ambea Q3 sales rise on higher occupancy, operational improvements

Overview

• Sweden care provider's Q3 net sales rose 8% yr/yr to SEK 4,447 mln

• Adjusted EPS for Q3 rose to SEK 4.86 from SEK 3.83 yr/yr

• Company completed Humana acquisition after quarter end

Outlook

• Company sees growing demand for care services across the Nordic region

• Ambea expanding capacity to address anticipated future care needs

• Company has started integrating Humana acquisition, aiming for operational synergies

Result Drivers

• HIGHER OCCUPANCY - Co said increased occupancy rates across operations drove earnings growth

• STAFFING EFFICIENCY - Co said improved staffing efficiency contributed to profitability, notably in Nytida and Stendi

• ACQUISITIONS - Co said acquisitions, including Validia and Humana, supported growth and expansion

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 "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy."

• Wall Street's median 12-month price target for Ambea publ AB is SEK216.50, about 16.6% above its November 3 closing price of SEK185.60

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)