Overview
Italy digital transformation firm's Q1 revenue grew 18.5% yr/yr, driven by organic growth
Q1 EBITDA rose 18.3% yr/yr, supported by increased R&D investments
Company maintained leadership continuity with new Board and CEO confirmed
Outlook
TXT expects business development to continue at rates in line with annual guidance
Company plans to accelerate external growth via acquisitions completed and additional transactions
TXT expects acceleration in Smart Solutions growth from Q2, driven by organic and M&A
Result Drivers
ORGANIC GROWTH - Co said Q1 revenue growth was mainly driven by organic expansion across divisions
R&D INVESTMENTS - Increased research and development spending supported EBITDA growth
Company press release: ID:nBIA8w1pZT
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 109.2 mln
EUR 107 mln (1 Analyst)
Q1 EBITDA
EUR 15.8 mln
Q1 Organic Growth
17.3%
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for TXT e solutions SpA is €43.70, about 37.4% above its May 13 closing price of €31.80
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
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.)