Detection Technology - SBU and IBU drove strong results
DT’s Q2 results clearly topped estimates as SBU and IBU grew a lot faster than expected, while MBU sales were lower than estimated. The top line beat and favorable sales mix led to an EBITA of EUR 3.3m, compared to our EUR 2.7m estimate.
- DT Q2 revenue grew by 3.5% y/y to EUR 26.1m vs the EUR 25.6m/25.4m Evli/consensus estimates while adjusted EBITA amounted to EUR 3.3m, compared to the EUR 2.7m/2.7m Evli/consensus estimates. Operating margin thus already reached 12.7% thanks to improved productivity, sales mix and sales growth.
- Medical (MBU) top line declined by 25.3% y/y to EUR 9.3m vs our EUR 10.8m estimate. Sales were negatively affected by the same factors as in Q1, but there were also some positive signals with regards to the easing of the Chinese anti-corruption campaign towards the end of the year. Improved order book and sales prospects suggest growth from Q3 onwards.
- Security (SBU) grew by 26.7% y/y to EUR 11.5m, compared to our EUR 10.7m estimate. The aviation industry’s CT applications demand remained strong but was also good for line scanner applications.
- Industrial (IBU) top line increased by 42.6% y/y to EUR 5.3m vs our EUR 4.2m estimate. Demand was better than expected in TFT flat panel detectors in Asia and improved in all main applications (including for the food industry).
- DT expects its top line to grow at a double-digit rate in Q3 and H2.