Husqvarna Q2 EBIT misses estimates on bad Europe weather, cost pressure
Husqvarna Q2 EBIT misses estimates on bad Europe weather, cost pressure
Overview
Sweden outdoor equipment maker's Q2 sales and EBIT missed analyst expectations amid European weakness
Adjusted EPS for Q2 declined yr/yr
Company cites weak European demand, unfavorable weather, and inflationary pressures for lower sales
Outlook
Company expects external headwinds, including weak consumer sentiment, to persist
Husqvarna raises cost savings target to SEK 3 bln by end of 2028
Result Drivers
EUROPEAN WEAKNESS - Co said challenging market conditions and unfavorable weather in Europe weighed on demand, particularly in Gardena and Forest & Garden divisions
NORTH AMERICA GROWTH - North America delivered solid growth across most product categories, offsetting some European weakness
INFLATION AND COST PRESSURES - Lower sales volumes, continued inflationary pressure, higher raw material and logistics costs, and negative currency effects impacted earnings
Company press release: ID:nWkr2fhRjd
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 14.38 bln | SEK 14.59 bln (4 Analysts) |
Q2 Adjusted EPS |
| SEK 2.27 |
|
Q2 EPS |
| SEK 1.80 |
|
Q2 EBIT | Miss | SEK 1.60 bln | SEK 1.64 bln (4 Analysts) |
Q2 Adjusted EBIT |
| SEK 1.95 bln |
|
Q2 EBIT Margin |
| 11.10% |
|
Q2 Organic Growth |
| -4.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the appliances, tools & housewares peer group is "buy"
Wall Street's median 12-month price target for Husqvarna AB is SEK42.00, about 12.1% above its July 16 closing price of SEK37.48
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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.)
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