• Hexagon’s 1Q net sales were EU1.30 billion, a 1.2% increase year-over-year (y/y), but less than the estimated EU1.33 billion.
• Organic revenue grew by 3%, falling short of the 4.78% expectation.
• Adjusted pretax profit was only EU293.2 million, compared to an estimated EU328.8 million.
• The adjusted Ebit was EU335.9 million, less than the forecasted EU385.5 million.
• Adjusted operating margin was 37.2% compared to 35.9% y/y, exceeding the estimate of 28.8%.
• Adjusted Ebitda reached EU483.6 million, a 4.6% increase y/y, but still slightly less than the estimated EU498.6 million.
• CEO indicates that “the immediate demand environment will remain mixed”.
• Despite potential economic slowdown, the CEO remains confident in achieving the 2022–2026 financial goals.
• There are currently 10 buys, 9 holds, and 5 sells ratings for the Hexagon.
A look at Hexagon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Hexagon has a positive long-term outlook with strong scores in Growth and Momentum. With a score of 4 in Growth, the company is expected to expand and increase its market presence over time. Additionally, scoring a 4 in Momentum indicates that Hexagon has been performing well in the market recently, with potential for continued growth in the future.
Although Hexagon has lower scores in Value and Dividend at 3 and 2 respectively, its overall resilience is rated at 3. This suggests that while the company may not be undervalued or offer high dividends, it has the ability to withstand market challenges and maintain stability. With a focus on design, measurement, and visualization technologies, Hexagon is positioned to capitalize on the evolving needs of various industries and potentially drive future growth.
Hexagon AB is a global provider of design, measurement and visualization technologies, with a main business area focused on Measurement Technologies encompassing Geosystems, Metrology, and Technology applications. The company offers systems for designing, measuring, and positioning objects, as well as processing and presenting data.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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