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Canada's Savaria Q3 revenue rises 9%

By Reuters News


Overview

  • Canada accessibility equipment maker's Q3 revenue rose 9%, slight beat of analyst expectations

  • Q3 adjusted EPS missed analyst expectations

  • Q3 adjusted EBITDA beat analyst expectations


Outlook

  • Savaria targets 12% annual revenue growth through 2030, reaching about C$1.6 bln revenue

  • Company aims to maintain adjusted EBITDA margin of at least 20% through 2030

  • Savaria expects adjusted EBITDA per share to reach about C$4.25 by 2030


Result Drivers

  • ORGANIC AND ACQUISITION GROWTH - Co said revenue growth was mainly driven by 6.8% organic growth, 1.4% growth from acquisitions, and a 0.8% positive foreign exchange impact

  • SEGMENT GROWTH - Accessibility and Patient Care segments both posted revenue increases, with Accessibility up 9.1% and Patient Care up 8.6%

  • LOWER STRATEGIC INITIATIVE EXPENSES - Operating income rose partly due to the absence of C$4.7M in strategic initiative expenses that were present in the prior year


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

C$245.03 mln

C$243.99 mln (7 Analysts)

Q3 Adjusted EPS

Miss

C$0.32

C$0.35 (6 Analysts)

Q3 Adjusted Net Income

Miss

C$23.33 mln

C$24.90 mln (2 Analysts)

Q3 Net Income

C$23.05 mln

Q3 Adjusted EBITDA

Beat

C$52.07 mln

C$51.31 mln (8 Analysts)

Q3 Gross Profit

C$96.36 mln

Q3 Operating Income

C$35.61 mln

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

  • The average consensus recommendation for the heavy electrical equipment peer group is "buy"

  • Wall Street's median 12-month price target for Savaria Corporation is C$35.00, about 16.8% above its November 3 closing price of C$29.96

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


Reuters Recommended Reads

  • Nov 3 - Addus HomeCare Q3 adjusted EPS beats estimates; to acquire AccentCare personal care division

  • Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase

  • Nov 3 - LTC Properties Q3 revenue surges on SHOP acquisitions


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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