Sweden's Hexpol Q3 sales beat on volume increases

Overview

• Sweden polymers group's Q3 sales rose 13% yr/yr, beating analyst expectations

• Q3 EBIT missed analyst expectations and EBIT margin declined to 12.3% from 14.7%

• Company said higher overhead costs weighed on margin despite double-digit organic growth

Outlook

• Company says environment remains uncertain

• HEXPOL expects recent acquisitions to support growth in Thermoplastic Compounding and cable markets

Result Drivers

• ORGANIC GROWTH - Co said double-digit organic growth of 12% drove sales increase in Q3

• VOLUME INCREASES - Co said it increased volumes within most of its largest end customer segments

• PRICE ADJUSTMENTS - Co said it successfully adjusted prices to offset rising raw material costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Hexpol AB is SEK97.50, about 2.2% above its October 22 closing price of SEK95.40

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

Reuters Recommended Reads

• Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

• Oct 23 - Sweden's Lifco Q3 sales rise 8.3%, pretax profit tops estimates

• Oct 23 - Sweden's Momentum Group Q3 revenue up 8% on Industry business strength

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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.)