Sweden's Engcon Q2 net sales rise 12%, margin narrows on restructuring costs
Sweden's Engcon Q2 net sales rise 12%, margin narrows on restructuring costs
Overview
Sweden tiltrotator supplier's Q2 net sales rose 12% yr/yr, organic growth 13%
Operating profit for Q2 increased 8%, margin declined to 17.2% due to restructuring costs
CEO cites renewed focus on R&D, production and sales to meet growth targets
Outlook
Company did not provide specific financial guidance for the current or future periods
Result Drivers
ORGANIC GROWTH - Co said Q2 organic net sales and order intake increased, supporting overall revenue growth
RESTRUCTURING COSTS - Operating margin was affected by SEK 13 mln in restructuring costs, per CEO Stig Engström
FOCUS ON CORE AREAS - CEO cited renewed focus on R&D, production and sales as key to future growth
Company press release: ID:nMFN5xwhy7
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 594 mln |
|
Q2 Net Income |
| SEK 82 mln |
|
Q2 Operating Margin |
| 17.20% |
|
Q2 Operating Profit |
| SEK 102 mln |
|
Q2 Orders |
| SEK 487 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Engcon AB is SEK80.50, about 27% above its July 16 closing price of SEK63.40
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 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.)