Sweden's NOTE Q2 sales miss estimates despite acquisitions boost
Sweden's NOTE Q2 sales miss estimates despite acquisitions boost
Overview
Sweden electronics manufacturer reported Q2 sales up 20% yr/yr, missing analyst expectations
Adjusted operating profit rose to SEK 112 mln from SEK 94 mln
Organic growth was 1%, with acquisitions driving overall sales increase
Outlook
Company expects progressively increasing organic growth in the second half-year
Order backlog for the current year is 11% higher than at the same point last year
Company has a clear focus on improving cash flow in the second half-year
Result Drivers
ACQUISITIONS - Sales growth was mainly driven by acquisitions, especially in Security & Defence, with STI and Kasdon performing as expected, per CEO
CAPACITY EXPANSION - Opening of new Torsby plant doubled production capacity, enabling larger and more sophisticated assignments, per CEO
SUPPLY CHAIN CONSTRAINTS - Tighter materials market and limited supply of electronic components led to higher inventory and negatively impacted cash flow, per CEO
Company press release: ID:nMFN1R1RyW
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 1.18 bln | SEK 1.22 bln (3 Analysts) |
Q2 EPS |
| SEK 1.95 |
|
Q2 Net Income |
| SEK 56 mln |
|
Q2 Operating Margin |
| 7.70% |
|
Q2 Operating Profit |
| SEK 90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Note AB (publ) is SEK189.00, about 27.6% above its July 14 closing price of SEK148.10
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)