Sweden's Humana AB Q3 revenue rises 4% on price increases

By Reuters News


Overview

  • Sweden-based Nordic care provider's Q3 net revenue rose 4% yr/yr, slight organic growth

  • Adjusted operating profit for Q3 reached record high, margin improved due to price hikes and efficiencies

  • Company received public takeover offer, applied for delisting, and refinanced loans via Ambea


Outlook

  • Company did not provide specific financial guidance for the current or coming periods in its press release


Result Drivers

  • PRICE INCREASES AND EFFICIENCIES - Co said improved adjusted operating margin was mainly driven by price hikes and efficiencies within Individual & Family in Sweden

  • RISING NORDIC CARE DEMAND - Co said demand for Nordic care services continues to increase, supporting contract signings and pipeline expansion

  • ORGANIC GROWTH INITIATIVES - Co said targeted efforts to promote organic growth are starting to generate results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

SEK 2.59 bln

SEK 2.60 bln (1 Analyst)

Q3 Net Income

SEK 123 mln

Q3 Adjusted Operating Profit

SEK 221 mln

Q3 Operating Profit

SEK 213 mln

Q3 Organic Growth

0.30%

*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 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the healthcare facilities & services peer group is "buy"

  • Wall Street's median 12-month price target for Humana AB is SEK67.50, about 3.8% below its October 21 closing price of SEK70.20

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 21 - Sweden's Getinge Q3 organic sales rise 2.1%

  • Oct 22 - Sweden's Careium Q3 sales rise 21.6%, margin improves

  • Oct 22 - Sweden's Arjo Q3 revenue beats estimates, gross margin expands


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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