Fingerprint Cards: Q3 sales will be about 50 % below consensus

Research Note

2017-09-18

21:36

FPC today, Monday, presented its third profit warning of 2017. There will be no recovery in Q3 despite normalized inventory as FPC expects Q3 sales of SEK 800-840 million. This is about half of our prognosis and the consensus view, despite a 40 percent volume growth from Q2, as the current ASP drop is around -30 percent. Everything else equal we assume Q3 EBIT will come in at about SEK 90-100 million, compared to our prognosis of SEK 426 million. Given FPC’s current challenges that will remain throughout the year we suspect that Q4 will be roughly in line with Q3, at best, meaning a full year EBIT of about SEK 350 million.

VW

Viktor Westman

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