Sweden's Sinch Q2 sales, adjusted EBITDA beat on growth in Americas
Sweden's Sinch Q2 sales, adjusted EBITDA beat on growth in Americas
Overview
Sweden communications platform's Q2 net sales rose 6% organically, beating analyst expectations
Adjusted EBITDA for Q2 beat analyst expectations
Company cancelled 7.2% of issued shares after AGM approval
Outlook
Sinch did not provide specific guidance or forecasts for the current or upcoming periods
Result Drivers
AMERICAS GROWTH - Organic revenue growth was led by the Americas, which also delivered strong organic gross profit growth, per acting CEO Jonas Dahlberg
APAC CHALLENGES - Performance in APAC was affected by temporary headwinds and continued operational challenges in India, according to acting CEO Jonas Dahlberg
CURRENCY EFFECTS - Currency effects had a negative impact of 2% on net sales and 3% on gross profit
Company press release: ID:nWkr9cJ7Hy
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | SEK 6.87 bln | SEK 6.55 bln (7 Analysts) |
Q2 Adjusted EBITDA | Beat | SEK 858 mln | SEK 839.40 mln (7 Analysts) |
Q2 EBITDA |
| SEK 824 mln |
|
Q2 Gross Profit |
| SEK 2.30 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 2 "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 SEK40.00, about 2.4% above its July 21 closing price of SEK39.08
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 31 three months ago
Reuters Recommended Reads
July 21 - Sweden's Alfa Laval Q2 sales rise 6%, beat estimates
July 21 - Sweden's MTG Q2 adjusted EBITDA tops estimates on casual games scaling
July 21 - Austria's EuroTeleSites Q2 revenue rises, helped by third-party tenant 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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