Sweden's Thule Q3 sales rise 3%, slightly miss estimates
Sweden's Thule Q3 sales rise 3%, slightly miss estimates
Overview
Sweden sports & outdoor gear maker's Q3 sales rose 3% but slightly missed analysts' expectations
Adjusted EPS for Q3 rose to SEK 3.65, with operating margin improving to 20% from 17.9%
Company appointed new chairman after board leadership change post-quarter
Outlook
Thule maintains long-term target of 7% annual organic sales growth
Company aims for adjusted EBIT margin of 20% over the medium term
Thule expects challenging market conditions to persist in the short term
Result Drivers
EUROPEAN GROWTH - Organic revenue in Europe rose 3.9%, offsetting declines elsewhere
PREMIUM PRODUCT DEMAND - Premium products, especially new launches like Thule Epos Park Secure and Arcos XL, saw strong demand despite cautious consumer spending
TARIFF REFUNDS - SEK 52 mln in tariff refunds contributed to operating income
Company press release: ID:nMFN53xTbj
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | SEK 2.60 bln | SEK 2.62 bln (6 Analysts) |
Q3 Adjusted EPS |
| SEK 3.65 |
|
Q3 Adjusted Free Cash Flow |
| SEK 791 mln |
|
Q3 EBIT |
| SEK 521 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Thule Group AB is SEK260.00, about 31.5% above its October 21 closing price of SEK197.70
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand
Oct 22 - Sweden's Essity slightly misses Q3 net sales estimates
Oct 21 - Husqvarna looks east as Chinese rivals chip away at robot lawnmower lead
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.)