Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

By Reuters News


Overview

  • Sweden industrial group Q3 net sales rose 13% yr/yr, slightly missing analyst expectations

  • Q3 EBITA rose 19% and slightly beat analyst expectations

  • Order intake grew 16% yr/yr, with strongest gains in medical, energy and engineering segments


Outlook

  • Company says strong order backlog and acquisitions support outlook for coming quarters

  • Company notes ongoing economic uncertainty mainly due to geopolitical situation

  • Company says energy investments in Europe contribute to order backlog, with long project lead times


Result Drivers

  • SEGMENT DEMAND - Co said order intake growth was strongest in medical technology, pharmaceuticals, energy and engineering segments

  • ACQUISITIONS - Acquisitions contributed 8% to net sales growth in the quarter

  • PRICING AND ORGANIC GROWTH - Margin improvement attributed to organic sales growth and successful pricing efforts


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Miss*

SEK 8.87 bln

SEK 8.90 bln (7 Analysts)

Q3 EPS

SEK 2.21

Q3 Net Income

SEK 804 mln

Q3 EBITA

Slight Beat*

SEK 1.36 bln

SEK 1.35 bln (6 Analysts)

Q3 EBITA Margin

15.30%

Q3 Orders

SEK 8.99 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Indutrade AB is SEK280.00, about 8.3% above its October 22 closing price of SEK258.60

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Oct 22 - Sweden's Atlas Copco Q3 revenue slightly beats estimates, orders up 29%

  • Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth

  • Oct 22 - Finland's Metso Q3 orders jump as mining demand lifts minerals segment


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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