Sweden's Fagerhult Q3 sales miss estimates on lower order intake 

Overview

• Sweden lighting solutions firm's Q3 net sales fell and missed analyst expectations

• Order intake for Q3 declined 13.8% organically, reflecting weak project activity

• Company cut costs by MSEK 51 in Q3, with further savings planned

Outlook

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

Result Drivers

• LOWER ORDER INTAKE - Co attributed net sales decline mainly to lower order intake in previous quarters

• WEAK PROJECT ACTIVITY - Co said activity in larger projects remained limited during the quarter

• COST SAVINGS - Co reduced costs by MSEK 51 in Q3, including MSEK 25 from ongoing cost-saving programme

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Fagerhult Group AB is SEK18.00, about 4.5% below its October 27 closing price of SEK18.84

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

Reuters Recommended Reads

• Oct 27 - Sweden's Assa Abloy slightly beats Q3 sales estimates on strength in Americas and EMEIA divisions

• Oct 27 - Assa Abloy third-quarter earnings beat forecast, helped by pricing and cost control

• Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake

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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.)