Össur: Steady as she goes - ABG

Solid Q3 with 7% organic growth and 8% EBITDA beat vs. ABGSC
Unchanged guidance leaves a wide Q4 range and question marks
6-9% negative EPS revisions, narrowing FVR to DKK 26-40


Solid Q3

Ossur had a solid Q3 with sales of USD 192.9m (1-2% below expectations) on 7% organic and 9% reported growth. The Prosthetics business delivered a very healthy 12% organic growth, as new products continuing to be well-received. By contrast, the Bracing & Support segment fell short with a meagre 1% organic growth. The gross margin was 30-120bp below expectations, while unchanged Q3 opex at $95m year-on year drove EBITDA (pre-items) to $36.3m, 1-8% better than expectated, for a margin 40-180bp ahead of ABGSCe. Net Profit was $13.9m (8-9% below expectations) on higher interest rates and adverse FX impact. Ossur generated healthy cash flow at $17m, for 2.9x Net Debt/EBITDA, but did not restart its share buyback programme despite being inside the targeted 2.0-3.0x range.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ossur/Equity-research/2023/10/ossur---steady-as-she-goes/