Nolato: Still struggling, a bit more than expected - ABG

Q4 15% below us on EBITA, but Medical beat expectations
Integrated the main driver of estimate downgrades
15-12x '23e-'24e EV/EBITA, margin recovery still likely


Q4 a disappointment overall, but Medical beat expectations

Nolato reported Q4 EBITA 15% below our expectations and 12% below FactSet consensus. Industrial Solutions in particular had a weak quarter, with a 2.8% EBITA margin, which management says should improve into Q1 given some easing of automotive production disturbances. Integrated Solutions underperformed the company's sales guidance, consequently hurting margins in the segment as well. On a positive note, Medical Solutions, Nolato's highest-quality segment, in our view, was 5% above our expectations on EBITA, showing a notable sequential margin increase of 1.2pp, which we find reassuring.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nolato/Equity-research/2023/2/nolato---medical-the-bright-spot-in-a-disappointing-report/