Q3 negatively impacted by supply chain issues

FY’21 guidance reiterated, after last week’s downgrade

Strong backlog potential for Q4’21 could steal focus

Q3’21 revenues of SEK 50m vs. ABGSCe 39m, Cons. 68m
Q3’21 numbers were better than we expected, following the FY’21 guidance downgrade last week, with revenues of SEK 50m (ABGSCe SEK 39m, FactSet cons. SEK 68m) and Net profits of SEK -7m (ABGSCe -11m, cons. -2m). The quarter however, was (as expected) negatively impacted by the continued challenge in the supply of components and the company’s decision to focus on ramping up the organization, prioritizing the long-term operational robustness, over short-term revenue growth.

FY’21 guidance at revenues of SEK 215-235 (ABGSCe 228m)
FY’21 guidance remains reiterated, following last weeks downgrade. It stands at revenues of SEK 215-235m (ABGSCe SEK 228m, cons. SEK 253m).

Company sees potential for strong order intake in Q4’21
The order back-log remain flat q-o-q at SEK 331m (which we continue to see as a solid backlog and is 57% higher than Q3’20) , with the company expecting a material increase in the order backlog during Q4’21. Overall, while a mostly neutral report, we would expect a slight positive share price increase, as it seems the company is now on for a solid Q4 and with the negative impact from last week’s FY’21 guidance downgrade having likely been fully absorbed in the market.

research@abgsc.com (Introduce.se)

ABG Sundal Collier - Introduce.se