Dustin Group's Q4 revenue misses on subdued demand

By Reuters News


Overview

  • Sweden IT reseller's Q4 revenue fell 4.8%, missing analyst expectations

  • Adjusted EBITA for Q4 beat analyst estimates despite lower sales

  • Company says Q4 sales decline due to order timing and subdued demand from higher prices


Outlook

  • Company did not provide specific financial guidance for the coming quarters or year


Result Drivers

  • ORDER TIMING - Co said Q4 sales declined partly because orders were brought forward to the previous quarter

  • SUBDUED DEMAND - Co said demand was subdued in Q4 due to higher price levels

  • EFFICIENCY MEASURES - Co said profitability improved mainly due to a lower cost base after efficiency measures, per CEO Samuel Skott


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

SEK 4.81 bln

SEK 5.05 bln (4 Analysts)

Q4 Adjusted EPS

SEK 0.02

Q4 Adjusted EBITA

Beat

SEK 110 mln

SEK 99.30 mln (4 Analysts)

Q4 Adjusted EBITA Margin

2.30%

Q4 EBIT

SEK 75 mln

Q4 Organic Growth

-5.00%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the computer hardware peer group is "buy."

  • Wall Street's median 12-month price target for Dustin Group AB is SEK2.03, about 14.5% above its October 13 closing price of SEK1.77

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 12 - Swedish industrial tech firm Karnell's prelim Q3 sales jump amid strong demand

  • Oct 12 - Sweden's Telia to cut around 900 jobs and save $100 million

  • Oct 14 - Sweden's Avarda Bank Q3 loans climb 20%, profit up 29%


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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