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Investing.com -- AutoStore Holdings Ltd. (OL:AUTO) on Thursday delivered a strong third quarter, beating expectations across all key metrics despite ongoing market challenges.
The company reported orders of $152 million, up 6% year-over-year and 4% ahead of consensus estimates of $146 million. The book-to-bill ratio stood at 1.1x, with order backlog reaching $543 million, representing a 13% increase year-over-year and 3% sequential growth.
Revenue came in at $139 million, down 4% year-over-year (7% organic decline) but 5% above consensus expectations of $132 million. Regional performance varied significantly, with North America showing strong growth of 20%, while EMEA declined by 10% and APAC remained flat.
Adjusted EBITDA reached $66 million, down 3% year-over-year but 11% ahead of consensus estimates of $59 million. This resulted in adjusted EBITDA margins of 47.1%, approximately 240 basis points above consensus expectations of 43.1%.
The company maintained stable margins year-over-year thanks to cost-cutting measures implemented earlier this year, with operating expenses down 10% compared to the same period last year.
Gross profit was $102 million, 4% above consensus estimates of $98 million, with gross margins at 73.2%, approximately 110 basis points below consensus expectations of 74.2% but stable compared to the previous year.
AutoStore no longer provides full-year revenue guidance, but management’s tone in the earnings release suggests improving market conditions, with no mention of the difficult market conditions and elongated decision-making cycles highlighted in previous quarters. The company continues to focus on research and development, with several product launches during the quarter.
Current company consensus estimates project full-year revenues of $495 million, representing an 18% year-over-year decline, and EBITDA of $203 million, implying margins of 41%, down approximately 3 percentage points year-over-year.
With the fourth quarter typically stronger for revenues, there appears to be potential for high single-digit EBITDA upgrades to full-year consensus estimates.
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