Stable Growth and Strategic Improvements Expected for q.beyond AG in Q3

q.beyond AG is set to release its Q3 report on November 11th, with expectations of a 4.1% year-on-year sales increase to €47.3 million. The managed service segment is projected to drive this growth with a 6% increase in sales to €32.8 million, maintaining a gross margin of 21%. In the consulting sector, while sales are anticipated to remain flat at €14.5 million, a stable gross margin of 6.5% is expected.

The company aims to enhance consulting margins by boosting utilization and off-shoring activities. Q3 EBITDA is projected at €2.2 million, reflecting a significant improvement from €0.1 million the previous year, supported by ongoing cost reductions.

Management is likely to reaffirm its full-year guidance of €192-198 million in sales and €8-10 million EBITDA, anticipating stronger performance in Q4. Consequently, the stock remains a 'Buy' with a target price of €1.10 based on current valuations.