NCAB Group Q3 net sales top estimates; warns of supply chain concerns

Overview

• Sweden printed circuit board supplier's Q3 net sales rose 54%, beating analyst expectations

• Adjusted EPS for Q3 increased to SEK 0.69

• Order intake for Q3 surged 166% yr/yr to SEK 2.62 bln

Outlook

• Company does not expect supply situation to improve before late 2027

• Company sees continued supply chain challenges with longer lead times and higher prices

• Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

• SUPPLY CHAIN ADVANTAGE - Co said its scale and relationships with manufacturers helped secure material and production capacity, supporting strong order intake

• FORWARD ORDERS AND HIGHER PRICES - Co attributed surge in order intake to customers bringing forward orders and higher market prices

• PRICE INCREASES AND ACQUISITIONS - Co said net sales growth was helped by price increases and contribution from Board Shark PCB acquisition

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for NCAB Group AB (publ) is SEK95.00, about 23.4% above its October 22 closing price of SEK77.00

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 41 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)