Sweden's Hexatronic swings to profit in Q3
Sweden's Hexatronic swings to profit in Q3
Overview
Sweden fiber solutions provider's Q3 revenue rose 33% yr/yr to record high
Adjusted EBITA for Q3 up 93% yr/yr, margin improved to 11.3%
Net income turned positive from loss in prior year period
Outlook
Hexatronic expects normal seasonal slowdown in Q4 and Q1 versus Q2 and Q3
Company expects European market to remain subdued in near term for Fiber Solutions
Hexatronic sees continued strong demand in North America and for submarine cables in Q4
Result Drivers
US MARKET GROWTH - Fiber Solutions organic growth and margin improvement driven by strong performance in North America, per CEO
PERFORMANCE IMPROVEMENT PROGRAM - Fiber Solutions profitability restored by performance improvement program now at full effect, per CEO
DATA CENTER DEMAND - Data Center segment growth supported by strong demand and acquisitions, with tailwinds from project timing and seasonality, per CEO
Company press release: ID:nMFN38cqWp
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 2.50 bln |
|
Q3 Net Income |
| SEK 180 mln |
|
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 electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Hexatronic Group AB is SEK46.00, about 17.9% above its October 21 closing price of SEK39.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Oct 21 - Sweden's Vertiseit Q3 revenue rises 45%, ARR up 44%
Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations
Oct 21 - Sweden's AddLife beats Q3 net sales expectations
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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.)