Sweden's Granges Q3 adjusted EBIT jumps 50%, beats estimates
Sweden's Granges Q3 adjusted EBIT jumps 50%, beats estimates
Overview
Sweden aluminium recycler's Q3 adjusted EBIT rose 50% yr/yr, beating analyst expectations
Diluted EPS and net income increased yr/yr
Profit growth driven by market share gains, improved pricing, and increased recycling
Outlook
Company expects Q4 sales volume in Asia to fall by about 10 ktonnes for low-margin products
Granges expects Q4 sales volume in Americas and Europe to grow at a mid single-digit rate
Company aims to offset cost increases with pricing and productivity in Q4
Result Drivers
AMERICAS GROWTH - Market share gains and climate control market recovery drove sales volume growth in Americas
PRICING AND RECYCLING - Improved pricing, increased recycling and operational performance offset cost increases and supported record earnings
EUROPE MARKET SHARE - Market share gains and improved scrap spreads supported earnings in Europe despite weak demand and currency headwinds
Company press release: ID:nMFN6VnkSp
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS |
| SEK 3.63 |
|
Q3 Net Income |
| SEK 388 mln |
|
Q3 Adjusted EBIT | Beat | SEK 596 mln | SEK 511.34 mln (5 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aluminum peer group is "buy"
Wall Street's median 12-month price target for Granges AB is SEK217.00, about 26.4% above its October 21 closing price of SEK171.70
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 19 - China aluminium output hits record quarterly high despite capacity cap
Oct 19 - Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate
Oct 21 - Kaiser Aluminum Q3 sales slightly miss estimates
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.)