Elekta shares reverse course, rise after mixed Q3 results

Elekta AB (publ)

29/02/2024 10:41

** Shares in Swedish radiation therapy equipment maker
Elekta  EKTAb.ST  rise 3.4%, reversing course after initially
falling about 4%, after reporting mixed Q3 results on Thursday
    ** Bernstein analyst Lisa Bedell Clive says that there was
"quite a bit of negative sentiment on the stock going into the
quarter," and that the underlying performance "wasn't too bad"
with good cash flow and only a slight miss on revenue and EBIT
    ** However, Q3 orders at SEK 4,433 million (about $429
million) were 14% below estimates in a company provided
consensus
    ** "While orders were expected to be hit in APAC (Chinese
anti-corruption) and EMEA (tough comp), the magnitude was larger
than expected and Americas orders were flat," JPMorgan says
    ** JPM adds that year-to-date orders contracted 7% which is
"not particularly supportive of the reiterated mid term guidance
of >7% sales growth"
    ** "I think part of the muted reaction is a short squeeze,"
Bedell Clive said when asked about shares and order miss
    
   
($1 = 10.3263 Swedish crowns)

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))