Sweden's Hexpol Q3 sales beat on volume increases

Hexpol AB

Today 10:10

Overview
Sweden polymers group's Q3 sales rose 13% yr/yr, beating analyst expectations
Q3 EBIT missed analyst expectations and EBIT margin declined to 12.3% from 14.7%
Company said higher overhead costs weighed on margin despite double-digit organic growth

Outlook
Company says environment remains uncertain
HEXPOL expects recent acquisitions to support growth in Thermoplastic Compounding and cable markets

Result Drivers
ORGANIC GROWTH - Co said double-digit organic growth of 12% drove sales increase in Q3
VOLUME INCREASES - Co said it increased volumes within most of its largest end customer segments
PRICE ADJUSTMENTS - Co said it successfully adjusted prices to offset rising raw material costs

Company press release: ID:nMFN76Lgf1

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
SEK 5.30 bln
SEK 5.06 bln (5 Analysts)
Q3 EBIT
Miss
SEK 651 mln
SEK 732.60 mln (5 Analysts)
Q3 EBIT Margin
 
12.3%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Hexpol AB is SEK97.50, about 2.2% above its October 22 closing price of SEK95.40
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing
Oct 23 - Sweden's Lifco Q3 sales rise 8.3%, pretax profit tops estimates
Oct 23 - Sweden's Momentum Group Q3 revenue up 8% on Industry business strength

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.)