Sweden's NOTE Q3 sales rise 27%, but miss estimates
Sweden's NOTE Q3 sales rise 27%, but miss estimates
Overview
Sweden electronics manufacturer’s Q3 sales rose 27% yr/yr but missed analyst expectations
Q3 EPS rose to SEK 1.98 from SEK 1.92
Company says material shortages and plant relocations limited growth and profitability
Outlook
Company says order backlog for current year is 12% higher than previous year
Company says order book for H1 2027 is about 20% higher year-on-year, including acquisitions
AI data-centre customer production is scheduled to start in Q1 2027, with potential annualised sales of about SEK 100 mln in 2028
Result Drivers
ACQUISITION-LED DEFENCE GROWTH – Recent acquisitions contributed to Security & Defence sales growth of 222% in Q3; organic growth was 19%
PLANT RELOCATIONS - Production disruptions linked to plant relocations for two operations limited growth and profitability, per CEO
UK AND CHINA DRAG – Slower progress at China and previously started UK plants reduced local profitability and consolidated profit
Company press release: ID:nMFN8LwQgm
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | SEK 1.06 bln | SEK 1.11 bln (3 Analysts) |
Q3 EPS |
| SEK 1.98 |
|
Q3 Net Income |
| SEK 57 mln |
|
Q3 Operating Margin |
| 8.60% |
|
Q3 Operating Profit |
| SEK 91 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Note AB (publ) is SEK195.00, about 12.6% above its October 22 closing price of SEK173.20
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 22 - Nordic Semiconductor Q3 revenue beats estimates
Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations
Oct 22 - London Stock Exchange Group Q3 total income up 8.8%
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.)