StrongPoint - The recovery is still out of sight - ABG

Q2 likely similar to Q1
Q2 seems to have developed in a similar way to Q1, with the trend of longer decision cycles and customers holding back investments being in full force. We expect StrongPoint to report Q2 revenues of ~NOK 306m (-9% y-o-y), driven by a 17% y-o-y decline in the Products segment (Services flat). The gross margin will likely hover at39-40%, an improvement from the ~36% in Q1, but slightly below the 40.4% in Q2'23. We forecast Q2 EBITDA of ~NOK -12m, but note that the company will book ~NOK 10m in restructuring expenses (one-off), i.e. Adj. EBITDA is closer to ~NOK -2m. We anticipate Q2 EBIT and net profit of ~NOK -23m and NOK 20m, respectively.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/29ea6fec719f4b8d9a5d7777ab4d83c9/pdf/the-recovery-is-still-out-of-sight.pdf