Cavotec: Margin improvements ahead - ABG
Q1 report due Wednesday 15 May at 07:00 CEST
Q1e: sales EUR 44.2m, up 12% y-o-y; EBIT margin of 3.9% (0.8%)
We expect positive margins, sales and cash flow trends to continue
Q1e, continued margin progress
We expect Q1 sales of EUR 44.2m, up 12% y-o-y, as the growth rate normalises following elevated levels in the past two years (R12m +24% org.). We estimate EBIT of EUR 1.7m (0.3m) for a margin of 3.9%, which we expect to convert to net income of EUR 0.67m (-1.3m). This implies EPS of EUR 0.01 (-0.01) and FCF (lease adj.) of EUR 4m (-3m). We expect Q1 to show continued improved profitability and positive margin trends driven by solid demand and less drag from orders with worse pricing.
Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2024/5/cavotec---margin-improvements-ahead/