Q.beyond AG Faces Mixed Q3 Results Amidst Challenging Environment

q.beyond AG's recent Q3 report, evaluated by NuWays AG, reveals a mix of positive and negative outcomes amidst a challenging macroeconomic environment. Sales dipped by 7.2% year-over-year, reaching €43.6 million, mainly due to a weak performance in the Managed Services segment. Despite these challenges, the Consulting segment showed resilience with an 8.7% increase in sales.

The gross margin improved slightly by 0.6 percentage points to 16.8%, driven by better utilization and an improved sales mix in Consulting. However, the EBITDA saw a slight setback, primarily due to project costs and the impact of a recent tax audit.

Looking ahead, q.beyond's management remains optimistic, affirming their full-year guidance. Strategic moves, such as expanding near- and off-shoring and enhancing their AI and cloud offerings, continue to bolster their confidence. NuWays AG maintains a 'BUY' recommendation with a target price of €1.30.