Q1 EBIT SEK 13m, -17% vs. ABGSCe, -35% vs. cons Could see neg. consensus ‘21e EBIT revisions of ~3% Conference call 29 April 10:00 CET Q1’21 details Invisio reported its Q1’20 figures today where reported net sales was SEK 144m, +4.
3% vs. ABGSCe, +1. 6% vs.
consensus, for a y-o-y growth of 23. 0%. Management reports that the market is slowly but surely recovering, especially in the U.
S. following the rapid COVID-19 vaccine rollout, which is reflected in the strong order intake of SEK 137m in the quarter (tilted to the latter part of Q1). The quarter also saw a solid gross margin albeit slightly below 2020 levels due to product mix and the acquisition of Racal Acoustics weighing.
The gross margin was 57. 5%, -0. 1pp vs.
ABGSCe. Total opex amounted to SEK -70m, 8. 3% above ABGSCe estimate of SEK -64m.
This yielded an EBITDA of SEK 23m, +7. 3% vs. ABGSCe but -6.
4% vs. consensus. EBIT was SEK 13m, -17.
0%% vs. ABGSCe and -34. 9% vs.
consensus. The deviation versus our EBIT estimate was mainly driven by more D&A than anticipated, at SEK -11m vs. ABGSCe SEK -7m.
The increase in D&A was driven by two factors 1) Invisio has launched several new products, which causes Invisio to start amortising its capitalized development expenses, 2) PPA amortisations associated with the Racal Acoustics acquisition. We expect negative consensus ‘21e EBIT revisions of ~3% We could see FactSet consensus lowering its ‘21e EBIT estimate by ~3% on the back of the report. Final thoughts Invisio’s share is down ~13% YTD, as the company has been pressured by COVID-19 related order delays.
In terms of ‘21e, we think that we will see a gradual ramp-up in large order intake in conjunction with the easing of COVID-19 lockdowns. Given the rapid COVID-19 vaccine rollout in the US, we would not be surprised to see new large orders announced in the latter part of H1’21e. There is a conference call/webcast tomorrow (29 April) at 10:00 CET, conference-ID: 749 3158, dial in SE: +46 (0) 8566184.
