Sweden's Arjo Q3 revenue beats estimates, gross margin expands

By Reuters News


Overview

  • Sweden healthcare equipment provider's Q3 revenue grew 6% organically, beating analyst expectations

  • Adjusted EBITDA and adjusted EBIT for Q3 beat analyst estimates

  • Company attributed performance to strategic initiatives and focus on profitability


Outlook

  • Arjo aims to improve EBIT by about SEK 350 mln versus 2025 as part of new strategy


Result Drivers

  • ORGANIC GROWTH - Co reported 6% organic sales growth in Q3

  • GROSS MARGIN IMPROVEMENT - Co said gross margin increased to 43.0% from 41.1% in prior yr qtr

  • STRATEGIC FOCUS - CEO said focus is on turning strategy into results and gradually building a stronger Arjo


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

SEK 2.85 bln

SEK 2.72 bln (5 Analysts)

Q3 Adjusted EBITDA

Beat

SEK 523 mln

SEK 453.50 mln (4 Analysts)

Q3 Adjusted EBIT

Beat

SEK 247 mln

SEK 183.88 mln (5 Analysts)

Q3 Adjusted Free Cash Flow

SEK 485 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

  • Wall Street's median 12-month price target for Arjo AB (publ) is SEK30.00, about 7.3% above its October 21 closing price of SEK27.96

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


Reuters Recommended Reads

  • Oct 21 - Medical gear maker Getinge beats Q3 profit estimates on pricing, product mix

  • Oct 21 - Sweden's Getinge Q3 organic sales rise 2.1%

  • Oct 21 - Thermo Fisher Q3 revenue, adj profit beat estimates after new product launches


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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