Sweden's Granges Q3 adjusted EBIT jumps 50%, beats estimates

By Reuters News


Overview

  • Sweden aluminium recycler's Q3 adjusted EBIT rose 50% yr/yr, beating analyst expectations

  • Diluted EPS and net income increased yr/yr

  • Profit growth driven by market share gains, improved pricing, and increased recycling


Outlook

  • Company expects Q4 sales volume in Asia to fall by about 10 ktonnes for low-margin products

  • Granges expects Q4 sales volume in Americas and Europe to grow at a mid single-digit rate

  • Company aims to offset cost increases with pricing and productivity in Q4


Result Drivers

  • AMERICAS GROWTH - Market share gains and climate control market recovery drove sales volume growth in Americas

  • PRICING AND RECYCLING - Improved pricing, increased recycling and operational performance offset cost increases and supported record earnings

  • EUROPE MARKET SHARE - Market share gains and improved scrap spreads supported earnings in Europe despite weak demand and currency headwinds


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

SEK 3.63

Q3 Net Income

SEK 388 mln

Q3 Adjusted EBIT

Beat

SEK 596 mln

SEK 511.34 mln (5 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aluminum peer group is "buy"

  • Wall Street's median 12-month price target for Granges AB is SEK217.00, about 26.4% above its October 21 closing price of SEK171.70

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


Reuters Recommended Reads

  • Oct 19 - China aluminium output hits record quarterly high despite capacity cap

  • Oct 19 - Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate

  • Oct 21 - Kaiser Aluminum Q3 sales slightly miss estimates


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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