Hexagon share price hits an all-time high thanks to marine unit recovery
Swedish industrial technology group Hexagon AB, a leader in advanced measurement solutions for a number of industries, reported quarterly earnings this week that topped analysts’ expectations and propelled its share price to record highs. The outperformance was due, in part, to a recovery at the company’s Power Process and Marine (PPM) division, which makes software for marine ventures like ships and offshore facilities.
Hexagon’s share price rose 9% over the last 30 days to an all-time high!
SOURCE: Yahoo Finance
The company said that an otherwise robust business had been hurt in previous quarters by “a weak oil and gas sector” that has “weighed” on the PPM division. However, in the three months just reported, we’ve seen a turn-around. For the second quarter, Hexagon reported that the PPM division saw organic growth of 14%, year on year. That’s a big jump from the 1% year on year growth it reported in the first quarter.
Overall, group sales rose by 9% against the second quarter in the previous year. This is a beat against the Street’s prediction of 7.4%, and it’s also an acceleration against the first quarters increase of 7%, year on year.
The company maintained its guidance for the rest of the year, but analysts were happy with what they saw. Daniel Djurberg, a Handelsbanken Capital Markets analyst, said: “I think the strong organic growth was the stand-out.” He added that the fact this growth was spread out across multiple regions could “mitigate the impact of tougher comparisons in the second half of 2018.”
Dominion holds Hexagon AB in its Global Trends Managed Fund.
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