Etteplan: Good Q3 but uncertainty has increased - Nordea

The company’s net sales was EUR 80.3m and 3% above market (Refinitiv) consensus in Q3. Clean EBITA was EUR 7.8m in Q3 and also over consensus. However, market consensus of EUR 5.5m (EBITA) may have included one-offs from failed acquisition. Operating cash flow was EUR 4.1m in Q3. Etteplan do not see major changes in end demand and expects Q4 2022 to be fairly solid. But the demand situation in China somewhat weakened in Q3. Etteplan will also adopt a slightly more cautious policy with regards to recruitments. The company could prefer profitability over sales growth in 2023 we believe. Etteplan is a late cyclical company why demand weakness could come a bit later and not yet visible for the company. In any case, full year 2022 guidance midpoint was slightly downgraded due to uncertain market environment. We also agree that uncertainty related to industrial investments and order backlogs have increased.

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