Netcompany: Q3: Solid performance - seems back on track - Nordea

Netcompany reported solid Q3 results this morning and, importantly, reiterated/narrowed its 2022 guidance. Notably, the latter was a positive surprise compared to the profit warning reflected in the company-compiled consensus (and likely the share price). Compared to consensus, Q3 revenue and adjusted EBITDA ended up 2% and 10% higher (Nordea: 6%), respectively. Q3 organic revenue growth was 18% y/y and Q3 EBITDA margin ended up at 22.9% (consensus: 21.3%). Importantly, the performance was more broad-based, including the Danish operations delivering solid 14% revenue growth y/y and a strong 30% EBIT margin. The UK also delivered a solid quarter, growing 34%. Based on the reiterated/narrowed 2022 guidance and supported by the DKK 5.3bn revenue visibility at the end of Q3 (2022 revenue guidance: DKK 5.4-5.5bn), we expect that the Q3 report will trigger positive consensus estimate revisions, and a positive (relative) share price performance in addition to the 4% increase yesterday. The starting point of the updated EBITDA guidance is 4% above consensus. Our combined DCF- and SOTP-based fair value range is DKK 440-510 per share.