Sword Group: Q3 15 results in line after two asset disposals, FY15 guidance will be exceededBUY, Fair Value EUR25 (+8%)
Yesterday evening Sword reported Q3 15 results in line with our estimates, despite the disposal of two margin-dilutive entities (Kenzan, Charteris’ CRS2 division) during the summer. Management now expects FY15 guidance to be exceeded and is confident of delivering double-digit sales growth for 2016. For 2016-17, we are revising our sales ests. by -1% to take into account asset disposals and recent fx rates changes (USD, GBP), but our adj. EPS ests. remain unchanged as we are increasing our adj. EBIT margin ests. by +0.2ppt. We expect the share price to react positively.
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