Sintercast: A slight bump in the revenue growth road - ABG

Growth of 18% y-o-y, but 11% miss on our estimates
We reduce estimates, but maintain positive outlook
FV range of SEK 110-200 per share maintained


Miss on revenues but beat on EBIT due to US dollar

Q3 sales amounted to SEK 29.8m, growing 18% y-o-y, but missing our estimate by 11%. The reason for the miss was a slower than expected September due to supply chain constraints affecting two high-volume programmes. Annualised engine equivalents came in at 3.6m, up 13% y-o-y. The gross margin reached its highest point since Q3’19, coming in at 78%, thanks to the strong US dollar as well as a favourable sales mix. EBIT amounted to SEK 12.9m, beating our estimate by 24%, and corresponding to a margin of 43%. This was due to a positive contribution from revaluations of US dollar receivables. The company mentioned the strong ramp-up of the new Scania commercial vehicle production as the highlight of the quarter, and described it as a driver of continued growth throughout Q4 and into 2023.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2022/11/sintercast---a-slight-bump-in-the-revenue-growth-road/