
- Earnings Miss Expectations: Rockwool’s EBIT for the third quarter was €150 million, falling short of the expected €158.7 million and down 13% year-over-year.
- Sales Slightly Exceed Forecasts: The company’s sales were €963 million, showing a slight increase of 0.6% year-over-year and surpassing the estimate of €950.4 million.
- Net Income Decrease: Rockwool’s net income stood at €122 million, which is a 21% drop from the previous year but still slightly above the forecast of €119.1 million.
- EBITDA Falls Short: EBITDA was reported at €215 million, an 11% decrease compared to last year, and below the estimated €227.3 million.
- Year-End Forecast: The company maintains its expectation for an EBIT margin between 14% and 15%.
- Regional Performance: Key markets such as the UK and Canada faced challenges with postponed projects, whereas there was growth in eastern and southern Europe.
- Recovery in the UK: Sales in the UK have returned to normal levels at the start of the fourth quarter following a temporary slowdown and a longer-than-planned maintenance stop at the factory.
- Large Projects On Track: The company states that their large investment projects are progressing as planned.
- Profitability Challenges: Overall profitability was impacted by poor performance in the Russian and UK markets, along with reduced operational efficiency in several locations.
- Market Volatility Acknowledged: The company noted market volatility and hesitation affected the third-quarter results, as noted in their previous outlook adjustments.
- Analyst Recommendations: There are 9 buy recommendations, 6 hold recommendations, and 2 sell recommendations for Rockwool.
A look at Rockwool International A/S Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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
Rockwool International A/S, a company specializing in stone wool products, has received positive Smart Scores indicating a promising long-term outlook. With above-average ratings in Growth, Resilience, and Momentum, the company is positioned well for future expansion and market stability. These scores highlight Rockwool’s potential for continued growth, strong financial health, and positive market performance.
The company’s focus on value creation and maintaining a stable dividend payout further reinforces its position as a reliable investment opportunity. Rockwool International A/S‘s diverse product line, including insulation, fire protection, and horticultural substrates, coupled with its global presence, underlines its resilience in varying market conditions. Overall, the Smart Scores suggest that Rockwool International A/S is a solid investment choice with favorable prospects for long-term success.
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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