A good fing, but we see a temporary glitch

Research Note

2016-12-07

17:12

Following FPC’s Q3 report the share has plummeted and expectations has come down considerably prior to tomorrow’s Capital Markets Day. The market is increasingly questioning how sustainable FPC’s strong margins are. There is also concerns that Chinese players are taking market share at the expense of FPC. It remains to be seen if FPC can ease the market’s worries tomorrow. We believe the market will focus on whether FPC can uphold its margins and how it sees competition. A mid-point in revenue guidance below consensus at SEK 8.5 billion would disappoint, especially if EBIT guidance falls short of expectations at 36 percent. At Redeye, we primarily focus on the long term prospects, and we hope to hear more about new verticals and solutions. That said, we see a temporary glitch for FPC and we adopt a more cautious view in anticipation of the CMD.

JW

Joel Westerström

Disclosures and disclaimers

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