Doro: Good order intake in Q2

Q2 sales were a disappointment, coming in at 14% less than forecast. This deviation in sales means that the operating result came in at 50% lower than expected. Order intake increased by 14% above our forecast and indicates healthy sales in Q3. Doro is in a period of heavy investment and operating costs have risen. Calculated on a rolling 12-month basis however, EBIT has increased by 11% while sales have gone up by 6% during the same period. This indicates that the company continues to grow and has control over its costs. Since the report was published the shares have fallen by just over 20%; an overreaction we think, and not justified given the company’s future earnings capacity. We think that it is a good time to pick up the shares and the risk is relatively low.