Switzerland's LEM Holding Q1 sales rise on data center demand
Switzerland's LEM Holding Q1 sales rise on data center demand
Overview
Switzerland electrical measurement firm's fiscal Q1 sales rose 12.4% yr/yr, driven by data center demand
Company's EBIT margin expanded to 14.6% from 5.5%, reflecting strong operating leverage
LEM remains cautious on outlook due to macroeconomic uncertainty, but reconfirms mid-term ambitions
Outlook
LEM sees sequential improvement in bookings driven by data center-related demand
Company remains cautious about business development due to uncertain global macro-economic environment
LEM reconfirms its mid-term financial ambitions
Result Drivers
DATA CENTER DEMAND - Co said strong demand for data center cooling, power supply and infrastructure drove growth in Automation and Energy Distribution & High Precision
STRATEGIC PRICING AND PRODUCTIVITY - Co maintained gross margin through pricing initiatives and supply productivity gains despite inflationary headwinds
OPERATIONAL LEVERAGE - Co attributed EBIT margin expansion to operational excellence and lower SG&A expenses
Company press release: ID:nEQbkgB6la
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales |
| CHF 85.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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 Lem Holding SA is CHF405.00, about 6.2% above its July 27 closing price of CHF381.50
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand
July 27 - Navitas Semiconductor Q2 revenue rises on AI infrastructure demand
July 27 - France's Rexel H1 sales rise, EBITA margin improves on volume and price gains
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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.)