STOCKHOLM (Reuters) - Getinge (GETIb.ST) beat third-quarter core profit expectations, sending shares in the Swedish medical technology group up 16% early Friday. Profit before interest, tax, amortization and items affecting comparability was 677 million Swedish crowns ($70 million), up from 438 million a year earlier, the company said in a statement.
That topped the 560 million expected by analysts, Refinitiv data showed.
“We continue to show strong organic sales growth and improved margins in the third quarter,” CEO Mattias Perjos said.
In April, Getinge announced restructuring measures which it said would improve its earnings in the second half of 2019..
Friday’s gains mean Getinge’s long-troubled shares are up 97% this year.
The group has had a few turbulent years, with setbacks ranging from earnings misses to costly quality control problems at plants.
It is also subject to a fraud investigation in Brazil and lawsuits in the United States and Canada.
“It’s a very strong reaction, and indeed surprisingly strong and this comes on the back of a solid third-quarter result across the board. We highlight the surgical workflow division which has been a soft spot,” Johan Unnerus, analyst at Pareto Securities, told Reuters.
“Another reason for the share price reaction is that Getinge’s share has lagged the local equity market lately,” Unnerus added.
Third-quarter net sales and order intake at the maker of products for surgery, intensive care, infection control and sterilization increased by 4.8% and 3.5%, respectively.
The company maintained its outlook for 2019 sales growth of 2% to 4%.
“Operating expenses are reduced sequentially, compared with the preceding quarter, which is a sign that our restructuring measures are starting to show results,” said Perjos.
Editing by Clarence Fernandez and Jason Neely