Sweden's ITAB Q2 sales beat; company says business climate remains cautious
Sweden's ITAB Q2 sales beat; company says business climate remains cautious
Overview
Sweden retail store solutions firm's Q2 net sales declined slightly but beat analyst expectations
Q2 operating profit missed analyst expectations amid cautious market and lower sales in key regions
Outlook
ITAB aims to gradually reach a 7–9% operating margin
Company says business climate remains cautious, impacting sales and profitability in some markets
ITAB says integration of HMY and cost synergies are proceeding according to plan
Result Drivers
REGIONAL WEAKNESS - Co said lower sales and profitability in Italy, the UK and the Middle East weighed on Q2 earnings
COST SYNERGIES - Integration of HMY and realization of cost synergies are proceeding according to plan, per CEO Björn Borgman
COST INCREASES - Co said it is focusing on mitigating cost increases through activities across the value chain and tailored price adjustments
Company press release: ID:nWkr9FclBv
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | SEK 3.20 bln | SEK 3.12 bln (3 Analysts) |
Q2 Adjusted EPS | Miss | SEK 0.21 | SEK 0.33 (2 Analysts) |
Q2 Net Income |
| SEK 61 mln |
|
Q2 Operating Profit | Miss | SEK 138 mln | SEK 167 mln (3 Analysts) |
Q2 Operating Cash Flow |
| -SEK 112 mln |
|
Q2 Operating Margin |
| 4.30% |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support supplies peer group is "buy."
Wall Street's median 12-month price target for Itab Group AB is SEK22.63, about 43.4% above its July 15 closing price of SEK15.78
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 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.)