Cavotec: Substantial earnings growth expected in Q4 - Introduce

Tuesday, January 21, 2020 8:18 AM
"We expect Q4 orders of EUR 48m, up 9% y-o-y (7% organic), as we anticipate step three in the turnaround (pursuing growth) to kick in during 2020. We forecast sales of EUR 50m, up 3% y-o-y (2% organic), supported by an increasing order book of higher quality versus its history. We expect a similar cost base to that of Q3, leading us to derive adj. EBIT of EUR 4.2m (0m Q4’18), for a margin of 8.5%, above the company’s 7% targeted margin “before 2021”. As we head into 2020, we believe Cavotec will say that most of the turnaround efforts have been completed and that focus will now be on profitable growth."

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