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SINCH — Sinch AB (publ) News Story

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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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