Norway's Atea Q2 revenue rises on hardware strength
Norway's Atea Q2 revenue rises on hardware strength
Overview
Norway IT infrastructure supplier's Q2 revenue grew 14.1% yr/yr, all growth organic
Net profit after tax rose to NOK 218 mln from NOK 157 mln last year
Hardware sales up 21.2%, services sales down 4.7%, gross margin declined on hardware mix
Outlook
Atea expects Q3 sales and profit growth to remain strong, supported by solid demand
Company sees Q3 performance broadly in line with first half trends
Result Drivers
HARDWARE DEMAND - Strong demand for hardware, especially in the datacenter segment, drove sales growth
HIGHER HARDWARE PRICES - Sales growth benefited from higher hardware prices, which led some customers to accelerate purchases
CURRENCY IMPACT - Currency fluctuations reduced reported sales growth by 5.8% as foreign sales were translated to a stronger Norwegian krone
Company press release: ID:nWkr93zF1r
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Revenue | Beat | NOK 10.40 bln | NOK 9.82 bln (2 Analysts) |
Q2 Net profit after tax |
| NOK 218 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 Atea ASA is NOK180.00, about 9.8% above its July 14 closing price of NOK164.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago
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.)