STOCKHOLM: Weekly Earnings Summary Feb 21

Results: It was a disastrous week for Truecaller. Operating profit plummeted by 54.0%.

Reason: Ad revenue per user decreased drastically (-40.4%). Algorithm changes by a major partner have dealt a severe blow to its business model.

Reaction: The market punished the uncertainty severely, and the stock fell -24.8% for the week, finding only fragile stability at the week's end.

Results: Although engcon's operating profit returned to 14.3% growth, investors were spooked by the decline in net profit.

Reason: European sales recovered, but rapidly rising costs ate into margins. The market focused on the pressure on profitability rather than the recovery in sales revenue.

Reaction: Disappointment over profitability triggered a massive sell-off, which sent the stock price down -14.9% for the week.

Results: Bravida proved its strength, increasing operating profit by 6.1% despite a decline in sales revenue.

Reason: The key to success was strict cost control, which clearly outperformed competitors like NCC and Skanska.

Reaction: The market highly valued the company's resilience – the stock rallied +11.3% for the week on the results, reaching a new 52-week high.

Results: BioArctic made a significant turnaround, reaching profitability thanks to the sales success of its Alzheimer's drug, Leqembi.

Reason: A surge in revenue from research collaborations and royalties confirmed the drug's commercial potential.

Reaction: Investors welcomed the transition to a profitable drug manufacturer, and the stock rose +8.4% for the week, despite cautious comments from analysts about its high valuation.

Results: Castellum's operating results were weak – operating profit fell 3.8% due to increased vacancy rates.

Reason: However, the stock rose thanks to an aggressive response from management: a major asset sale and a share buyback program were announced.

Reaction: This move restored investor confidence, and the stock finished the week up +6.5%.

Results: Lundin Gold is riding the wave of high gold prices – operating profit grew an impressive 73.5%.

Reason: The company announced record cash flow and a large dividend, supported by the high price of gold.

Reaction: However, the stock fell -1.0% for the week, suggesting a "sell the news" reaction where investors took profits after a long rally.

Results: Asmodee Group delivered a positive surprise, increasing its operating profit by a whopping 144.3%.

Reason: The success was driven by phenomenal sales of partners' trading card games (especially Pokémon), confirming a profitability turnaround.

Reaction: Supported by analysts, the stock rose +5.3% for the week, reflecting the market's belief in the sustainability of the company's new growth momentum.

Results: Catena's operating profit grew by 17.4%, although the growth rate has slowed due to rising costs.

Reason: Investors looked past the costs and focused on the long-term potential and stable rating.

Reaction: The stock rose +4.8% for the week, showing that the market still highly values the leader in the logistics real estate sector despite short-term cost pressures.

Results: Scandic's results were disappointing, with operating profit falling by 23.9%.

Reason: Rising costs and depreciation wiped out the modest increase in sales revenue. This is the third consecutive quarter where costs have grown faster than revenue.

Reaction: Concerns about profitability and reduced price targets from analysts led the stock to a -3.3% decline for the week.

Results: Sinch remains under pressure. Although profit on paper improved, investors are concerned about the 12.6% decline in sales revenue.

Reason: The company is losing revenue due to the termination of low-margin contracts, which raises questions about growth.

Reaction: The market is not convinced of the turnaround's success, and the stock fell -6.8% for the week.