Vaisala - The momentum continued in Q3
Preliminary figures given with the positive profit warning, Vaisala’s Q3 result came in strong and included no large surprises. Net sales saw a double-digit growth while EBIT remained on a good level.
- Group result: Orders received grew nicely by 25% and the orderbook was 14% higher than in the previous year. Net sales grew by 20% y/y to EUR 133.3m (133.3/133.3m Evli/cons.). The growth was driven by both Vaisala’s business units. Spot-component impact continued stronger than a year ago, and gross margin fell short that of the previous year. EBIT slightly improved and amounted to EUR 22.0m (22.0/22.0m Evli/cons.), EBIT margin of 16.5%. EPS amounted to EUR 0.44 (0.45/0.47 Evli/cons.).
- Industrial measurements (IM): Orders received grew by 30% (FX: 21%) y/y and the orderbook was 60% higher than a year ago. Net sales increased by 22% (FX: 14%) y/y to EUR 57.6m (Evli: 59.9m). A weaker gross margin had an impact on the EBIT margin which amounted to 25.3%. Profitability was under pressure of increased material and fixed costs.
- Weather and Environment (W&E): Orders received increased by 21% (FX: 14%) y/y and the orderbook was 6% higher than a year ago. Net sales grew by 18% (FX: 11%) y/y to EUR 75.7m slightly beating our estimates (Evli: 73.4m). Spot-component purchases weakened the gross margin, but surprisingly EBIT margin improved to 9.9% against our expectations.
- Market outlook: High-end industrial instruments, life science, power industry, and liquid measurements are expected to grow. Meteorology and ground transportation are expected to be stable. Aviation is expected to recover towards pre-pandemic level. Renewable energy market is expected to continue to grow. The global shortage of components is expected to continue during Q4’22 causing additional material costs.
- Guidance intact (revised on 14th Oct): Net sales of EUR 500-520m and EBIT of 62-72m.