Sweden's AQ Group Q3 sales beat estimates on defense, data center demand

Overview

• Sweden industrial components maker reported Q3 net sales up 21%, beating analyst expectations

• EPS before dilution for Q3 rose to SEK 2.23

• Company attributed growth to demand in US and China, especially defense and data centers

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in the press release

Result Drivers

• US AND CHINA DEMAND - Co said rapid growth in the US and China drove Q3 sales, particularly in defense and data centers

• INDUCTIVE COMPONENTS - Increased deliveries of inductive components for electric power and cooling of data centers contributed to growth

• ACQUISITIONS - Co said acquisitions of Time 24 and Norlake added 2% to Q3 growth, with integration focused on semiconductor and transformer segments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for AQ Group AB is SEK233.00, about 2.8% below its October 14 closing price of SEK239.60

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

• Oct 15 - Norway's Nel Q3 revenue drops on lower Alkaline segment activity

• Oct 12 - Swedish industrial tech firm Karnell's prelim Q3 sales jump amid strong demand

• Oct 13 - Scaleway to build AMD-powered AI supercomputer in Sweden

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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.)