Lagercrantz - Sales in line but with strong margins
Sales SEK 1,078 down 1% y-o-y (ABGSCe -1%) EBITA SEK 168m (+9% vs. ABGSCe) Expect cons. EBITA estimates up 2% on isolated Q3 Q3’20/21 results Q3’20/21 sales came in at SEK 1,078m down 1% y-o-y (-1% vs. ABGSC 1,090 and -1% vs.
Factset consensus 1,087m), organic growth was -1% (ABGSC -1%). Acquisitions and FX contributed +2% and -2%, respectively. EBITA was SEK 168m (+9% vs ABGSC 154m and 5% vs.
cons 160m), EBITA margin of 15. 6% (ABGSC 14. 1%, cons 14.
7%). Net Profit SEK 111m (ABGSC SEK 101m, cons SEK 106m). The EBITA beat is a result of stronger than expected results in most segments.
Of the segments, it was especially strong performance in Electronics, beating ABGSCe EBITA by 34% and had an EBITA margin of 12. 5% (9. 5%).
Forecast changes and outlook On isolated Q3’20/21 numbers, expect consensus to increase EBITA estimates by 2% ‘20/21e. The third quarter displayed sequential recovery, as expected, and management notes that order intake was in line with previous years indicating a return to normal. This is indicating a stronger recovery than expected, as we have -1% organic growth in Q4’20/21e as well.
Management mentions good opportunities for a high acquisition rate in 2021. Share view The share is up 15% L3M, trading at 25x NTM EV/EBITA, in line with core peer group. While the sector has rerated significantly, leaving little room for negative revisions, we expect a positive reaction to today’s results on the back of strong margins.
More details expected during conference call at CET 10. 00, dial-in +46 8 619 7530. PIN: 332347#.
