Sweden's NCC Q2 operating profit misses estimates, hurt by higher costs
Sweden's NCC Q2 operating profit misses estimates, hurt by higher costs
Overview
Sweden construction firm's Q2 sales and EBIT missed analyst expectations
Orders received in Q2 rose year-over-year
Higher earnings offset by increased costs from ongoing disputes
Outlook
Company did not provide specific guidance for future quarters or the full year
Result Drivers
ORDER INTAKE - Co cited increased orders received in contracting as a driver for the quarter
CONTRACTING MARGINS - Co said higher margins in contracting contributed to results
COSTS FROM DISPUTES - Co said higher earnings were offset by increased costs related to ongoing disputes
Company press release: ID:nWkr1G25bb
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 14.22 bln | SEK 14.85 bln (3 Analysts) |
Q2 Profit after tax |
| SEK 452 mln |
|
Q2 EBIT | Miss | SEK 635 mln | SEK 738.67 mln (3 Analysts) |
Q2 Orders |
| SEK 14.13 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Ncc AB is SEK210.00, about 15.2% above its July 13 closing price of SEK182.30
The stock recently traded at 10 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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