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DistIT Group Q4: A disappointing end to a challenging year - SEB

DistIT Group, a distributor of IT/Technology and consumer goods, reported sales in line with our forecasts (bolstered by 4.5% organic growth, as expected), while results are disappointing (negative FX effects, lower bought-in margins burdened by supply chain cost inflation). Also, stock in trade at 26.3% of trailing sales is a likely concern in the market. In all, deviations correspond to about an 8% downgrade to our full-year EBIT estimates. Our mid-point value is SEK 170.

DistIT Group, a distributor of IT/Technology and consumer goods, reported sales in line with our forecasts (bolstered by 4.5% organic growth, as expected), while results are disappointing (negative FX effects, lower bought-in margins burdened by supply chain cost inflation). Also, stock in trade at 26.3% of trailing sales is a likely concern in the market. In all, deviations correspond to about an 8% downgrade to our full-year EBIT estimates. Our mid-point value is SEK 170.
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