Sweden's Addnode Q2 profit slips on restructuring costs
Sweden's Addnode Q2 profit slips on restructuring costs
Overview
Sweden digitalization software firm's Q2 net sales declined slightly, with organic growth negative
Q2 EBITA and net profit fell yr/yr, impacted by restructuring costs and tough comparisons
Outlook
Company expects annual cost savings of about SEK 100 mln from restructuring program
Addnode sees growing AI-related opportunities and maintains a clear acquisition agenda
Result Drivers
AUTODESK RENEWAL CYCLE - Co said reported growth was impacted by the renewal cycle for Autodesk agreements, with early renewals in the prior year affecting comparability
EFFICIENCY PROGRAMS - Co implemented efficiency and restructuring programs in Symetri and Design Management divisions to improve profitability and focus on new sales; restructuring costs charged to Q2 earnings
Company press release: ID:nMFN4x27yn
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 1.45 bln |
|
Q2 Net Income |
| SEK 20 mln |
|
Q2 EBIT |
| SEK 58 mln |
|
Q2 EBITA |
| SEK 148 mln |
|
Q2 EBITA Margin |
| 10.20% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Addnode Group AB (publ) is SEK93.00, about 113.8% above its July 14 closing price of SEK43.50
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 16 three months ago
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(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.)