Fortnox slides as Q1 margins weigh

Fortnox AB

25/04/2024 09:35

** Shares in Fortnox  FNOX.ST  fall around 6% after the
Swedish accounting solutions firm's Q1 margins miss expectations
    ** "The margin comes in a little weak due to high
recruitment of employees during the quarter," says Redeye
analyst Fredrik Nilsson, saying it will lead to higher OPEX
during the rest of 2024 and lower estimates for EBIT
    ** Nilsson adds, though, that he is not concerned with a
slightly higher recruitment this quarter as more employees are
needed to drive growth, adding that recruitment has been low for
some time before Q1
    ** Fortnox's EBIT margin came in at 39.6%, missing Redeye's
estimates by about 5%
    ** Jefferies says Fortnox's organic revenue growth of 25% is
"a decent run rate against the backdrop of ongoing difficult
macro environment" but that the growth in itself might not be
enough to lead shares to perform
    ** If losses hold, shares will see their worst day in a
month

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))