How do you find good buying opportunities in growing quality companies such as Vaisala and Hexagon, which almost always look expensive relative to their near-term performance? We believe these companies should be bought when the market fears the short-term effects of a weak demand cycle - in other words, a dip.

Hexagon suffered from cyclical headwinds in Q2 but also demonstrated strong underlying development with good growth in recurring revenue and improved efficiency. Analyst Pauli Lohi comments on this development and the company’s outlook.

Q2 performance suffered from cyclical headwinds, but Hexagon also demonstrated strong underlying development such as good growth in recurring software revenue and improved efficiency. A cyclical recovery is not yet in sight in the near term, but we expect the underlying positive development to be increasingly reflected in earnings in Q4 and 2025.

Hexagon announced its Q2 results this morning. Revenue growth was below expectations due to cyclical factors such as weak construction and automotive markets. However, profitability beat expectations, driven by strong gross margin and good recurring revenue growth.

Hexagon will release its Q2 financial results on Friday, July 26. We expect revenue to grow moderately, supported by software and recurring revenue.

Hexagon’s Q1 report was a bit soft with growth below estimates. We believe the currently low market activity in the construction and manufacturing sectors slightly burdens Hexagon’s growth in 2024 but the company’s solid long- term growth profile is still intact. Analyst Pauli Lohi comments more in this interview!

Q1 report was a bit soft with growth below estimates. We believe the currently low market activity in the construction and manufacturing sectors slightly burdens Hexagon’s growth in 2024 but the company’s solid long-term growth profile is still intact.

Hexagon will release its Q1 financial results on Monday, April 29. We expect revenue to grow moderately and profitability to improve, driven by improved sales mix and operational efficiency.

Q4 earnings provided a small positive surprise. Earnings will most likely continue to improve in 2024-25, but the pace of growth is likely to slow after a strong cycle in 2021-23. Organic growth will be weighed down by weak construction at least in H1 2024. The expensive valuation leaves little upside for the stock, even if the ongoing rationalization program brings profitability to targeted levels.

Hexagon released its Q4 results today. Revenue growth was slightly below expectations due to cyclical factors such as the weak construction market. However, profitability exceeded expectations, driven by strong gross margin.