Pricer - Strong earnings beat on better deliveries - ABG

- Sales +15% y-o-y, +13% vs. ABGSCe
- Underlying operating profit well above ABGSCe
- Expect cons to lift '24e-'25e EBIT by ~5%

Q4 results
Sales SEK 801m (13% vs ABGSCe 707m), Gross profit 142m (10% vs ABGSCe 129m), EBIT 20m (232% vs ABGSCe -15m), PTP 6m (124% vs ABGSCe -25m), EPS SEK 0.02 / share (118% vs ABGSC -0.12 / share). As expected, Pricer recognised several NRIs in the quarter, including a SEK 15m impairment and SEK 19m connected its cost savings program. Adjusting for these items, operating profit was SEK 54m, well above ABGSCe SEK 17m due to higher sales (deliveries) than expected.

Q4 thoughts
Orders grew 3% y-o-y to SEK 668m (+2% vs. ABGSCe), but improved markedly q-o-q. The gross margin of 17.7% contracted from Q3 at 18.1% (ABGSCe 18.2%), though this was impacted by an inventory impairment of SEK 5.5m. As such, the adjusted gross margin was 18.4% - a solid metric. Although sales were above our forecast, Pricer says that its largest customer in Canada has temporarily slowed down its deployment pace. Even so, Pricer sees a particularly good outlook ahead.

Valuation and estimate changes
Pricer's share is down 56% over the L1Y, trading at 8x-6x '24e-'25e EV/EBIT on our unrevised estimates. Based on the Q4 report, we expect consensus to lift '24e-'25e EBIT by ~5% on slightly on higher margins.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2024/2/pricer---strong-earnings-beat-on-better-deliveries/