DexCom earnings beat by $0.03, revenue topped estimates
Investing.com -- Shares of Thule Group AB (STO:THULE) climbed 2.5% today after the company reported a solid first quarter, with net sales increasing by 7.2% YoY to SEK 1,678m, slightly above the Modular Finance consensus.
The rise in sales was attributed to the launch of new products which helped to counter a challenging recreational vehicle (RV) market, where production levels have dropped among several manufacturers.
Thule Group’s organic growth experienced mixed results across its segments, with Sports & Cargo Carriers growing by 1% and Juvenile & Pet by an impressive 14%. However, Packs, Bags & Luggage and RV Products both saw a decline of 7%.
Despite these mixed results, the company’s EBIT jumped by 20.8% YoY to SEK 65m, far surpassing consensus predictions, resulting in a margin of 3.8%, up from 3.4% in the previous quarter.
The improved gross margin, driven by a favorable product mix and increased volumes, played a significant role in boosting earnings, although this was partially offset by higher costs associated with product launches. Thule Group also reported a strong cash flow, aided by a sizeable inventory reduction of SEK 492m since the start of the year, which exceeded the annual target of SEK 200m.
A statement from Jefferies, reflecting on the company’s performance, highlighted the positive outcome in light of the current market conditions: "Despite a small quarter, this report signals strength in a tough consumer market, and we anticipate a positive share price reaction today."
Investors appear to share this sentiment, as evidenced by the uptick in Thule Group’s stock price.
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