Hexagon smashes analysts’ expectations in fourth quarter
Swedish measurement technology firm Hexagon reported positive earnings this week, beating out analysts’ expectations for its fourth quarter significantly. The company has also seen good news come from the courts this month, as CEO Ola Rollen was acquitted of insider trading charges that have dogged him for over a year. Taken together, these two pieces of news have buoyed investor sentiment in January, sending the company’s share price soaring.
Hexagon’s share price has risen by 23% already in 2018!
SOURCE: Yahoo Finance
Hexagon announced that operating earnings rose to €247 million in the last quarter. That’s a strong beat against analysts’ expectations of €231 million, and an impressive increase from the year-ago quarter’s €209 million. The company also said its like-for-like sales growth outperformed expectations by a factor of two. Like-for-like sales rose by 10% in the last quarter against consensus estimates of 5%. Great news – especially since it marks an acceleration from the third quarter, when the metric stood at 6%.
Hexagon’s management has been under close scrutiny since Ola Rollen, its CEO, was accused of insider trading (at the end of 2016, he even spent a week in jail, from whence he delivered an earnings call). This month, Mr. Rollen was cleared of all charges by a court in Oslo, and affirmed his commitment to remaining head of the company. His lawyer made the following statement:
“We expected an acquittal from the start and are of course satisfied that the charges brought against Ola were dismissed by the Court. However, it remains profoundly disappointing that a proper assessment of the case was not made at an earlier point in time by the relevant Norwegian authorities.”
Dominion holds Hexagon AB in its Global Trends Managed Fund.
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