Increased costs likely to squeeze Q2 margins
Guidance likely to be reiterated given strong Q1 buffer
We keep our scenario-based FV range of SEK 7-45
Continued component shortage and inflation pressures Q2
Going into the Q2 report, we expect low sales growth of 5% (FactSet consensus 37%) and negative pressure on margins due to continued component shortages and a higher cost base (raw materials, utilities and wages). We thus expect an EBIT margin of -30% (cons. -14%). The underlying hurdle is the firm’s inability to properly deliver on high-margin product orders due to the delay of certain components and the fact that many of the low-margin, engineering-heavy orders are seeing diminished profitability due to higher wages.
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