Sweden's cloud communication firm Sinch beats Q3 estimates on strength in Americas
Sweden's cloud communication firm Sinch beats Q3 estimates on strength in Americas
Overview
Sweden cloud communications firm's Q3 sales rose 5% organically, beating analyst expectations
Adjusted EBITDA for Q3 beat analyst expectations, margin held steady at 13.7%
No shares repurchased under new buyback program announced in July
Outlook
Sinch did not provide specific financial guidance for the current or future periods in its press release
Result Drivers
AMERICAS GROWTH - Co said organic net sales and gross profit growth were driven by Americas
CURRENCY EFFECTS - Co said currency effects had a positive impact of 2 percent on net sales and gross profit
COST MANAGEMENT - Co said costs were tightly managed and efficiencies in general and administrative functions were redeployed to growth investments
Company press release: ID:nWkr90DCVx
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | SEK 7.09 bln | SEK 6.96 bln (9 Analysts) |
Q3 Adjusted EBITDA | Beat | SEK 967 mln | SEK 943.11 mln (9 Analysts) |
Q3 EBITDA |
| SEK 912 mln |
|
Q3 Gross Profit |
| SEK 2.45 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Sinch AB (publ) is SEK49.00, about 10.7% above its November 4 closing price of SEK44.25
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 34 three months ago
Reuters Recommended Reads
Nov 4 - Software firm Wolters Kluwer posts 6% organic revenue growth
Nov 5 - Sweden's Yubico Q3 net sales rise; appoints insider as deputy CEO
Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth
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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