Norway's Atea beats Q3 revenue estimates on high demand for data center solutions
Norway's Atea beats Q3 revenue estimates on high demand for data center solutions
Overview
Norway IT infrastructure supplier's Q3 net revenue grew 16.9%, beating analyst expectations
Organic sales growth in constant currency was 21.7%, driven by datacenter demand
Gross margin fell to 26.0% from 29.8% due to higher hardware sales mix
Outlook
Atea expects strong financial performance to continue in 2027
Company anticipates favorable market conditions and further market share gains in 2027
Atea sees continued efficiency improvements supporting results next year
Result Drivers
DATACENTER DEMAND - Co said high demand for datacenter solutions drove sales growth
HARDWARE SALES - Hardware sales grew by 25.0%, with higher hardware prices supporting growth
EFFICIENCY GAINS - Co said strong sales growth was achieved with minimal increase in staffing, demonstrating efficiency gains, per CEO Steinar Sønsteby
Company press release: ID:nWkrj6gMB
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | NOK 9.90 bln | NOK 9.16 bln (3 Analysts) |
Q3 Net Income |
| NOK 279 mln |
|
Q3 Organic Growth |
| 22.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Atea ASA is NOK187.50, about 15% above its October 21 closing price of NOK163.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Oct 21 - Australian AI data centre operator NextDC shares shed 42% on revenue delay, future plans on hold
Oct 21 - Software provider SAP Q3 revenue rises on cloud business growth
Oct 21 - IBM raises lower end of annual software revenue growth forecast after Q3 beat
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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.)