Sweden's Proact IT Q3 revenue rises 8.9%, margin improves
Sweden's Proact IT Q3 revenue rises 8.9%, margin improves
Overview
Sweden hybrid cloud provider's Q3 revenue grew 8.9% yr/yr, adjusted EBITA up 47.3%
Company says margin improvement driven by cost efficiency measures
New contracts for cloud services declined, but recurring revenue from cloud and support services rose
Outlook
Company says demand in data storage and protection driven by AI build-out and critical infrastructure focus
Company notes market continues to face high prices and long lead times for memory components
Result Drivers
COST EFFICIENCY - Co said margin improvement was driven by cost efficiency measures
AI AND INFRASTRUCTURE DEMAND - Co said AI build-out and focus on critical infrastructure drove demand in data storage and protection
COMPONENT PRICES AND LEAD TIMES - Co said market remains characterised by high prices and long lead times for memory components
Company press release: ID:nMFN1Qcmtx
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 1.18 bln |
|
Q3 EPS |
| SEK 3.18 |
|
Q3 Net Income |
| SEK 80 mln |
|
Q3 Adjusted EBITA |
| SEK 112 mln |
|
Q3 Adjusted EBITA Margin |
| 9.50% |
|
Analyst Coverage
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
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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.)