Sweden's Hanza Q2 sales rise on acquisitions
Sweden's Hanza Q2 sales rise on acquisitions
Overview
Sweden manufacturing solutions firm's Q2 net sales rose 70%, with 9% organic growth
Adjusted EPS for Q2 increased year-over-year
Company highlighted strong cash flow and Fortaco acquisition as drivers for future growth
Outlook
Company expects operating margin to continue to increase following BMK integration
Hanza says Fortaco acquisition will contribute positively to earnings per share from closing date
Company expects debt ratio to remain within financial targets after Fortaco acquisition
Result Drivers
ACQUISITIONS - Co said sales growth was partly driven by the Fortaco acquisition and integration of BMK
ORGANIC GROWTH - Co reported 9% organic sales growth in Q2
MARGIN IMPROVEMENT - Co said operating margin in BMK segment increased and order intake rose
Company press release: ID:nMFNRJDhT
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 2.57 bln |
|
Q2 EPS |
| SEK 0.85 |
|
Q2 Cash Flow From Operating Activities |
| SEK 273 mln |
|
Q2 EBIT Margin |
| 7.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Hanza AB is SEK169.50, about 27.4% above its July 20 closing price of SEK133.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 20 - Sweden's Hexpol Q2 sales, operating profit beat estimates
July 21 - Sweden's MedCap Q2 net sales rise 16% on organic growth and acquisitions
July 20 - Germany's STEICO H1 EBIT falls 31% as costs rise, confirms FY outlook
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.)