Detection Technology - EBITA a bit below estimates
DT’s Q2 revenue was slightly higher than expected, however the EUR 1.7m EBITA fell short of estimates as sales mix turned out to be even more unfavorable than estimated. Security CT sales should be back on track by the end of the year, yet DT’s outlook for H2 is softer than previously expected.
- DT Q2 revenue fell by 6.6% y/y to EUR 24.4m vs the EUR 24.1m/23.9m Evli/consensus estimates, while EBITA was EUR 1.7m vs the EUR 2.2m/2.3m Evli/consensus estimates. Top line decline and a less favorable sales mix impacted profitability, but cost measures are now being taken. Over half of the sales decline was due to currency fluctuations.
- Medical (MBU) revenue increased by 13.9% y/y to EUR 10.6m, compared to our EUR 10.0m estimate. CT demand strengthened especially in China.
- Security (SBU) fell by 28.2% y/y to EUR 8.2m vs our EUR 8.7m estimate. Security CT system installations in European aviation halted, however DT’s respective market position remained intact. Security CT sales should be back on track by the end of the year.
- Industrial (IBU) grew by 4.2% y/y to EUR 5.6m, compared to our EUR 5.4m estimate.
- DT expects a single-digit y/y revenue decline in Q3 and H2 of this year, which is a negative surprise as previously growth was expected especially in Q4.