Sweden's Sandvik Q3 revenue beats estimates on order growth

By Reuters News


Overview

  • Sweden industrial tech group's Q3 revenue rose 26% and beat analyst expectations

  • Adjusted EBIT for Q3 beat analyst expectations

  • Order intake grew 17% yr/yr at fixed exchange rates


Outlook

  • Sandvik did not provide specific guidance for future quarters or the full year in the press release


Result Drivers

  • ORDER GROWTH - Sandvik said order intake rose 17% yr/yr at fixed exchange rates, supporting revenue growth

  • ORGANIC REVENUE GROWTH - Co reported organic revenue growth of 25% at fixed exchange rates

  • MARGIN IMPROVEMENT - Adjusted EBITA margin increased to 22.5% from 19.0%


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

SEK 37.73 bln

SEK 36.89 bln (14 Analysts)

Q3 Adjusted EBIT

Beat

SEK 8 bln

SEK 7.86 bln (12 Analysts)

Q3 Adjusted EBITA

SEK 8.48 bln

Q3 Adjusted EBITA Margin

22.50%

Q3 Orders

SEK 36.95 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the mining support services & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Sandvik AB is SEK410.00, about 15.8% above its October 21 closing price of SEK354.00

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Oct 21 - Bearings maker SKF's profit slightly ahead of expectation, sees very volatile markets

  • Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates

  • Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric


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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