Hexagon earnings jump 13% from previous year, beats on sales
Geospatial measurement company Hexagon AB has reported earnings for its third quarter, beating the Street and seeing success in China and Europe. The group posted a 10% jump in net sales, and 13% in operating earnings (both on a year on year basis). Adjusted operating earnings came in at 232 million euros, against 205 million euros in the year ago quarter. The company said that organic sales rose by 8% from the same period in 2017, easily beating out consensus estimates of a 6.6% increase.
Hexagon’s share price surged by 12% last week on the back of strong earnings
Source: Yahoo Finance
Ola Rollen, Hexagon’s president and CEO, was quick to draw attention to the areas of the business, as well as the geographic regions, where Hexagon was outperforming. He released the following in a statement over the earnings:
“We continue to report strong results, recording 8 percent organic growth and further expanded the operating margin to 24.5 percent in the third quarter. Organic growth in the Manufacturing Intelligence division accelerated to 12 percent, driven by solid demand from the electronics and aerospace industry, continued strength in China and good growth in the software portfolio.”
He added: “The Geosystems division delivered another impressive quarter, with 11 percent organic growth stemming from strength in infrastructure and construction, the content programme and new product introductions. The underlying recovery in power and energy continued, with the PPM division recording 6 percent organic growth, supported by new perpetual license orders in construction and lifecycle management solutions. The public safety segment, Safety & Infrastructure, experienced another challenging quarter, mainly due to weak demand in US defense. Actions have been taken to ensure improvement in 2019”.
Dominion holds Hexagon AB in its Global Trends Managed fund.
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