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Sweden's Troax Group Q3 EBITA beats on data centre demand

By Reuters News


Overview

  • Sweden industrial safety firm's Q3 sales rose 51% yr/yr

  • Q3 EBITA beat analyst expectations

  • One-off costs from North American production move impacted operating profit


Outlook

  • Company sees continued strong demand in warehousing and data centre segments, especially in Europe and North America

  • Company expects demand from automotive and construction segments to remain weak

  • Troax Group notes uneven demand trends across regions and business segments


Result Drivers

  • WAREHOUSING AND DATA CENTRES - Co said growth was driven by warehousing segment in Europe and data centre demand in North America and Europe

  • AUTOMOTIVE AND CONSTRUCTION WEAKNESS - Co said demand from automotive industry in Europe and Asia, and construction segment, remained weak

  • PRODUCTION RELOCATION COSTS - Co said one-off costs from North American production relocation affected operating profit


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

EUR 0.12

Q3 Net Income

EUR 7.10 mln

Q3 EBITA

Beat

EUR 15.10 mln

EUR 13.70 mln (3 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 Troax Group AB (publ) is SEK163.00, about 12.3% above its October 28 closing price of SEK145.20

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

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

  • Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand

  • Oct 28 - Specialized equipment maker Terex Q3 sales beat on higher shipment volumes


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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