Sweden's OEM International Q3 sales beat estimates, partly on acquisitions

Overview

• Sweden technology trading firm's Q3 net sales grew 24% yr/yr, beating analyst expectations

• Incoming orders for Q3 rose 40% yr/yr to all-time high, led by Rest of Europe

• Q3 EBITA and profit per share both increased over 22% yr/yr, supported by higher gross margin

Outlook

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

Result Drivers

• ORDER GROWTH - Incoming orders rose 40% yr/yr to a record high, with Rest of Europe as the largest contributor

• ORGANIC AND ACQUISITION GROWTH - Net sales growth of 24% was driven by 14% organic growth and 8% from acquisitions, with currency effects adding 2%

• HIGHER GROSS MARGIN - EBITA reached a record high, supported by a higher gross margin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified industrial goods wholesale peer group is "buy"

• Wall Street's median 12-month price target for OEM International AB is SEK201.00, about 13.7% above its October 14 closing price of SEK176.80

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads

• Oct 15 - Sweden's AQ Group Q3 sales beat estimates on defense, data center demand

• Oct 15 - Ericsson braces for component cost hit after third-quarter profit beat

• Oct 14 - UK's Softcat FY2026 profit rises on large projects

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.)