Sweden's Avtech Q3 net sales fall 16% on lower customer usage
Sweden's Avtech Q3 net sales fall 16% on lower customer usage
Overview
Sweden air traffic management tech firm's preliminary Q3 net sales fell 16% yr/yr, due to lower utilization by a major customer
Net earnings for preliminary Q3 declined 40% yr/yr, impacted by lower revenue and investments
Company's preliminary Q3 cash flow improved, aided by EU grants and overdue customer payments
Outlook
Company says timing of customer decisions remains difficult to predict
Company reports a broader and more active commercial pipeline entering 2027
Result Drivers
MAJOR CUSTOMER UTILIZATION - Co said lower utilization by a major customer drove declines in recurring revenue
INVESTMENTS IMPACT - Co said planned investments in sales, onboarding and product development weighed on net earnings
EU GRANTS AND PAYMENTS - Co said improved cash flow was aided by EU project grants and overdue customer payments
Company press release: ID:nMFN8dj99x
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| SEK 10.30 mln |
|
Q3 Net Income |
| SEK 3.10 mln |
|
Q3 EBITDA |
| SEK 4.30 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Avtech Sweden AB (publ) is SEK6.60, about 112.2% above its October 12 closing price of SEK3.11
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Oct 12 - Swedish industrial tech firm Karnell's prelim Q3 sales jump amid strong demand
Oct 12 - Sweden's Telia to cut around 900 jobs and save $100 million
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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.)