Sweden's Ovzon Q3 profit rises on strong order intake, cost controls

Ovzon AB (publ)

Wed 07:13

Overview
Sweden's mobile satellite communications firm's Q3 revenue rose 9% yr/yr to 220 mln SEK
Q3 net income increased to 47 mln SEK from 28 mln SEK yr/yr
Company reported strong Q3 order intake with new customers and entry into two new countries

Outlook
Company aims to renew contracts, expand into new countries and fill Ovzon 3 in Q4 and into 2027
Ovzon preparing for additional satellite capacity, will commit to new satellites if conditions are right

Result Drivers
ORDER INTAKE - Co said strong Q3 order intake was driven by new customers, entry into new countries, and expanded or renewed contracts with existing customers
COST CONTROL - Co attributed strong profitability to continued cost control
SATELLITE UTILIZATION - Co said additional customers on Ovzon 3 satellite contributed to earnings

Company press release: ID:nMFN852ZRL

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
SEK 220 mln
SEK 231.50 mln (2 Analysts)
Q3 Net Income
 
SEK 47 mln
 
Q3 EBIT
 
SEK 54 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Ovzon AB (publ) is SEK55.00, about 66.7% above its October 20 closing price of SEK33.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations
Oct 21 - Sweden's Vertiseit Q3 revenue rises 45%, ARR up 44%
Oct 20 - Sweden's Tele2 Q3 sales rise on service revenue growth, cuts guidance

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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.)