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Scanfil: Q2 EBIT below consensus, guidance unchanged - Nordea

Net sales was in line with consensus (Refinitiv) in Q2. However, operating profit was 10% below consensus in Q2. EBIT margin was only 4.8% in Q2 compared to long term target of 7%. Reasons for a weak EBIT were related to China, FX and to poor availability of components but Scanfil expects the operating profit to develop positively in H2 2022. We see it realistic that EBIT in H2 2022 could be higher than year ago and also higher than in H1 2022. But we forecast lower net sales for next year y/y because improving component availability. Record-high component prices cannot last forever. Full year net sales and EBIT guidance were unchanged. We believe market consensus EBIT for 2022E could come down by 2-4%.

Net sales was in line with consensus (Refinitiv) in Q2. However, operating profit was 10% below consensus in Q2. EBIT margin was only 4.8% in Q2 compared to long term target of 7%. Reasons for a weak EBIT were related to China, FX and to poor availability of components but Scanfil expects the operating profit to develop positively in H2 2022. We see it realistic that EBIT in H2 2022 could be higher than year ago and also higher than in H1 2022. But we forecast lower net sales for next year y/y because improving component availability. Record-high component prices cannot last forever. Full year net sales and EBIT guidance were unchanged. We believe market consensus EBIT for 2022E could come down by 2-4%.
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