OssDsign continues to deliver above expectations, with record sales for the third quarter in a row, and 4% higher than we expected. Both the US (up 103% y-o-y) and Europe (up 5%) contributed to the beat. The company grew 3% sequentially and 34% organically y-o-y. We view this as extremely robust considering the sharp overall decline in elective procedures during Q4. However, earnings were on the low side, with EBIT 4% below our expectations. We assess that most of the deviation was due to what we would view as a non-recurring COGS expense related to revaluation of inventory. The gross margin was also slightly negatively affected by the intra-Europe sales mix, as we assess that the UK and Germany saw the sharpest declines in activity, while Spain and Italy were less affected. If we adjust for these factors, we estimate the adj. gross margin to be closer to a solid 74%. Personnel costs jumped more than expected sequentially due to the addition of several important hires. However, a slight ramp-up of costs to enable faster adoption of Catalyst should not be viewed as an issue given the incremental margin of added sales.
Shifting some sales from ‘22e into ‘23e
We cut ’22e sales by 5% as the Omicron impact should be larger in Q1’22e than in Q4’21, given the large-scale elective surgery pause in mid-December that lasted throughout January. However, electives have recovered at an impressive rate during February and, according to our tracker, are now back to solid levels, with a high surgical backlog to support solid growth in ‘22e. For ‘23e, we lift sales by 5%, in part to account for the better-than-expected market share gains this quarter, but also to account for the organizational investments that should help accelerate growth.
Valuation of SEK 8-21 per share unchanged
... Läs mer på Introduce
Aktuellt
SENASTE
