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Scanfil: Q3 was in line with consensus expectations and FY guidance was repeated - Nordea

The end demand has remained good for Scanfil’s services. The company expected the operating profit to develop positively in H2 2022 and that was the case in Q3. Net sales as well as operating profit were in-line with consensus (Refinitiv) in Q3. The availability of components has improved. The company’s cash flow has also improved due to halting of inventory growth. Scanfil's end customers have committed to buying the components they ordered, so there is no apparent writedown risk for inventory when component prices decrease. Full year 2022 net sales and EBIT guidance were unchanged. A potential economic downturn in 2023 combined with lower component prices, however, could lead to a y/y decline in net sales of more than 10% we believe. But Scanfil do not yet see demand weakness and the company expects Q4 2022 to be a good one. There are no guidance given for 2023 yet.

The end demand has remained good for Scanfil’s services. The company expected the operating profit to develop positively in H2 2022 and that was the case in Q3. Net sales as well as operating profit were in-line with consensus (Refinitiv) in Q3. The availability of components has improved. The company’s cash flow has also improved due to halting of inventory growth. Scanfil's end customers have committed to buying the components they ordered, so there is no apparent writedown risk for inventory when component prices decrease. Full year 2022 net sales and EBIT guidance were unchanged. A potential economic downturn in 2023 combined with lower component prices, however, could lead to a y/y decline in net sales of more than 10% we believe. But Scanfil do not yet see demand weakness and the company expects Q4 2022 to be a good one. There are no guidance given for 2023 yet.
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