Weak Margins

“Weak margins is the main reason for the disappointing Q4(13) results for the Nordic companies. 26% of the companies have reported sales above our estimates, 50% in line, and 24% below in the Q4 reports. For adj. pre-tax profits the outcome is gloomier; 29% above, 20% in line and as much as 51% below estimates. This shows (again) that it is tough to keep margins when growth is low. The margin improvement we look for, bottom-up, in 2014 will be back-loaded.” (Carnegie)

February 3, 2014:

“Nordic Q4 reporting season continues. We keep trimming our estimates as companies results are falling short of expectations. Only some 20% been beating the market.” (SEB)

During the last three months, Swedish profits have been revised lower bý 9% and 6 % for 2013 & 2014. Net sales have only seen minor revisions.

Profit Revisions

SEB has already concluded that the surge in Nordic Equity markets last year coincided with “one of the longest periods of earnings downgrade we have recorded.”

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