Etteplan - Softness continues
Etteplan’s sales and EBIT for Q3 were lower than expected at EUR 80.0m and EUR 5.0m respectively. Market remained tough as customers remain slow to make decisions on starting new projects.
- Net sales in Q3 were EUR 80.0m (EUR 80.3m in Q3/22), slightly below our estimates and consensus estimates (EUR 81.7m/82.0m Evli/Cons.). Revenue decreased 0.4% y/y, yet increased 2.1% at comparable FX rates.
- EBIT in Q3 amounted to EUR 5.0m (EUR 5.8m in Q3/22), below our estimates and consensus estimates (EUR 5.8m/6.0m Evli/cons.), at a margin of 6.2%. EBIT was affected by weaker profitability in the Engineering Solutions and Technical Communication Solutions segments.
- EPS in Q3 amounted to EUR 0.10 (EUR -0.03 in Q3/22), below our estimates (EUR 0.16 Evli).
- Net sales in Engineering Solutions in Q3 were EUR 45.1m vs. EUR 44.5m Evli. EBITA in Q3 amounted to EUR 3.9m vs. EUR 4.5m Evli.
- Net sales in Software and Embedded Solutions in Q3 were EUR 19.2m vs. EUR 21.5m Evli. EBITA in Q3 amounted to EUR 2.0m vs. EUR 1.7m Evli.
- Net sales in Technical Communication Solutions in Q3 were EUR 15.5m vs. EUR 15.6m Evli. EBITA in Q3 amounted to EUR 0.7m vs. EUR 1.1m Evli.
- Guidance for 2023 (unchanged from September): revenue in 2023 to be EUR 355-370 million, and operating profit (EBIT) in 2023 to be EUR 26-28.5 million.
- The clear positive of the report was the quick rebound of Software and Embedded Solutions as the segment’s profitability bounced back quickly from the low levels seen during Q2