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Balco Q2: Above our expectation, but uncertainty ahead - SEB

Balco reported net sales of SEK 346m (4% vs SEBE at 333m) with adj. EBIT SEK 29m, corresponding to a margin of 8.4%. The Q2 report was strong, but the company guides for a weaker Q3. The order intake and backlog were both down y/y and the company says it will probably affect upcoming quarters. Although we see this as a strong report, we believe softer guidance might weigh on investor sentiment ahead. We reiterate our mid-point of SEK 75 per share.

Balco reported net sales of SEK 346m (4% vs SEBE at 333m) with adj. EBIT SEK 29m, corresponding to a margin of 8.4%. The Q2 report was strong, but the company guides for a weaker Q3. The order intake and backlog were both down y/y and the company says it will probably affect upcoming quarters. Although we see this as a strong report, we believe softer guidance might weigh on investor sentiment ahead. We reiterate our mid-point of SEK 75 per share.
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