Sweden's Dometic Q3 sales rise and beat estimates
Sweden's Dometic Q3 sales rise and beat estimates
Overview
Sweden mobile living products maker's Q3 sales rose and beat analyst expectations
Company posted a large net loss due to non-cash goodwill impairment
Q3 EBIT missed analyst expectations, impacted by impairment charges
Outlook
Company says market conditions remain challenging and volatile entering Q4
Dometic targets annual savings of SEK 215 mln from restructuring by end of 2028
Company prioritizes improving profitability, cash generation and reducing leverage
Result Drivers
BROAD-BASED ORGANIC GROWTH - Co said organic sales rose 3% in Q3, with growth in three of four segments and contributions from both Service & Aftermarket and OEM channels
RAW MATERIAL COSTS - Higher raw material prices weighed on earnings, though price increases were implemented to offset these pressures
RESTRUCTURING ACTIONS - Co initiated a new restructuring program in Land Vehicles Americas to improve profitability and competitiveness
Company press release: ID:nWkr6Q7GCp
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | SEK 5.12 bln | SEK 4.78 bln (4 Analysts) |
Q3 Adjusted EPS |
| SEK 0.03 |
|
Q3 Loss Per Share |
| SEK 13.71 |
|
Q3 Net Loss |
| SEK 4.38 bln |
|
Q3 EBIT | Miss | -SEK 3.94 bln | SEK 321.25 mln (4 Analysts) |
Q3 Adjusted EBITA |
| SEK 495 mln |
|
Q3 Operating Cash Flow |
| SEK 480 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 auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Dometic Group AB (publ) is SEK38.00, about 75.9% above its October 21 closing price of SEK21.60
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates
Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand
Oct 21 - Bearings maker SKF's profit slightly ahead of expectation, sees very volatile markets
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.)