Sweden's Arjo Q3 revenue beats estimates, gross margin expands

Arjo AB (publ)

Today 06:21

Overview
Sweden healthcare equipment provider's Q3 revenue grew 6% organically, beating analyst expectations
Adjusted EBITDA and adjusted EBIT for Q3 beat analyst estimates
Company attributed performance to strategic initiatives and focus on profitability

Outlook
Arjo aims to improve EBIT by about SEK 350 mln versus 2025 as part of new strategy

Result Drivers
ORGANIC GROWTH - Co reported 6% organic sales growth in Q3
GROSS MARGIN IMPROVEMENT - Co said gross margin increased to 43.0% from 41.1% in prior yr qtr
STRATEGIC FOCUS - CEO said focus is on turning strategy into results and gradually building a stronger Arjo

Company press release: ID:nWkr2FPHR9

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
SEK 2.85 bln
SEK 2.72 bln (5 Analysts)
Q3 Adjusted EBITDA
Beat
SEK 523 mln
SEK 453.50 mln (4 Analysts)
Q3 Adjusted EBIT
Beat
SEK 247 mln
SEK 183.88 mln (5 Analysts)
Q3 Adjusted Free Cash Flow
 
SEK 485 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."
Wall Street's median 12-month price target for Arjo AB (publ) is SEK30.00, about 7.3% above its October 21 closing price of SEK27.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 21 - Medical gear maker Getinge beats Q3 profit estimates on pricing, product mix
Oct 21 - Sweden's Getinge Q3 organic sales rise 2.1%
Oct 21 - Thermo Fisher Q3 revenue, adj profit beat estimates after new product launches

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.)