Detection Technology - EBITA topped estimates
DT’s Q1 earnings were clearly above estimates even though revenue was basically as expected. MBU revenue fell more than expected, while SBU grew a lot more than was estimated. SBU outlook continues to be strong, and while MBU weakness will still limit Q2 growth DT should see revenue increase in H2.
- DT Q1 revenue decreased by 0.2% y/y to EUR 22.7m, compared to the EUR 22.6m/22.5m Evli/consensus estimates. Adjusted EBITA landed at EUR 2.3m vs our EUR 1.6m estimate.
- Medical (MBU) revenue fell by 20.9% y/y to EUR 9.5m vs our EUR 10.6m estimate. Sales fell more than expected. MBU demand is expected to be muted also in Q2 while a positive turn is expected at the beginning of Q3.
- Security (SBU) grew by 31.5% y/y to EUR 9.6m, compared to our EUR 8.4m estimate. Europe and India grew strong, driven by CT applications for the aviation market. Demand was also solid for line scanner applications. Medium term market growth rate is seen to be around 8%.
- Industrial (IBU) grew by 5.3% y/y to EUR 3.6m vs our EUR 3.7m estimate. Demand recovered towards the end of Q1 as the food sector showed positive signs of recovery. Destocking nevertheless caused sales to remain below target.
- DT expects its revenue to remain stable in Q2 y/y and turn to growth in Q3. SBU and IBU are to see double-digit growth in Q2 while MBU is to decrease. Improved productivity, sales mix, and growth in sales continue to lift results.