Sinch shares head for best day ever as Q3 earnings seen to triple
21/10/2022 09:01
** Shares in Sinch SINCH.ST surge 40% and are on track for
their best day since listing after the Swedish cloud
communications company announced strong preliminary Q3 results
** The company expects its quarterly revenue to double
year-on-year to SEK 7.2 bln ($638.6 mln), implying a 10% beat
versus the mean estimate by analysts polled by Refinitiv
** SEB analyst Daniel Thorsson highlights that Sinch's Q3
adj. EBITDA forecast is 34% above consensus, adding the SEK 5
bln impairment announced on Thursday should have no material
effect on equity
** "We expect a strong share today, potentially a short
squeeze," Thorsson says in a note, outpointing the stock has
been shorted on decelerated organic growth, margin pressure and
rights issue risk
** The Sinch shares trade at SEK 29 at 0745 GMT, its highest
price in three months
** The company will publish full Q3 report on Nov. 2
($1 = 11.2740 Swedish crowns)
(Reporting by Izabela Niemiec)
((Izabela.niemiec@thomsonreuters.com))