Norway's Zalaris Q2 revenue falls on weak consulting business
Norway's Zalaris Q2 revenue falls on weak consulting business
Overview
Norway payroll software firm's Q2 revenue fell 4.9% yr/yr to NOK 344 mln
Adjusted EBIT margin for Q2 was 10.9%, down from last year
Reported EBIT turned negative due to costs related to Kona BidCo AS acquisition
Outlook
Company did not provide specific guidance for the current quarter or full year in press release
Result Drivers
ACQUISITION COSTS - Negative reported EBIT mainly due to advisory and share-based payment costs related to Kona BidCo AS acquisition
STRATEGIC TRANSITION - CEO said the quarter delivered stable underlying performance during a period of strategic transition
Company press release: ID:nWkr4vVHxc
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | NOK 344.20 mln | NOK 408 mln (1 Analyst) |
Q2 Adjusted EBIT |
| NOK 37.60 mln |
|
Q2 EBIT |
| -NOK 14.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "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 employment services peer group is "buy"
Wall Street's median 12-month price target for Zalaris ASA is NOK102.50, about 4.6% above its August 13 closing price of NOK98.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Aug 13 - Denmark's Netcompany misses Q2 revenue estimates, lifts FY revenue growth forecast
Aug 11 - Finland's Siili Solutions Q2 revenue falls, cuts guidance
Aug 13 - Norway's Axactor ASA Q2 gross revenue falls, EBITDA turns negative
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(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.)