Bonava Q2 EBIT beats on turnaround efforts in Swedish operations
Bonava Q2 EBIT beats on turnaround efforts in Swedish operations
Overview
Sweden residential developer's Q2 net sales rose yr/yr but missed analyst expectations
Q2 EBIT increased sharply and beat analyst estimates
Company completed refinancing in July, reducing financing costs and lifting dividend restriction
Outlook
Bonava did not provide specific guidance for future quarters or the full yr
Result Drivers
COST CONTROL - Co said improved cost control in production starts and overhead contributed to higher profitability
TURNAROUND IN SWEDEN - Co said turnaround efforts in Swedish operations contributed positively to results
CAPITAL EFFICIENCY - Co cited improved capital efficiency as supporting controlled growth and profitability
Company press release: ID:nWkr764ksX
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 2.09 bln | SEK 2.12 bln (4 Analysts) |
Q2 Gross Margin |
| 15.50% |
|
Q2 EBIT | Beat | SEK 166 mln | SEK 149 mln (4 Analysts) |
Q2 EBIT Margin |
| 7.90% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Bonava AB (publ) is SEK15.00, about 53.5% above its July 16 closing price of SEK9.77
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 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.)