Redeye - Currency stifled solid report from Doro

Doro’s sales amounted to SEK 437 million, following a growth of 15 percent; 3 percentage points better than our estimates. EBIT at SEK 37.8 million, however, was SEK 10 million lower than expected due to marketing campaigns. Sales and order intake were strong in all major regions and smartphone sales in Europe grew sequentially from 10 to 15 percent of total sales.

The outlook for H1 (regarding currency effects) concerned the market. Doro’s CEO’s sound concern and call for action on this matter had the opposite effect. Our investment case, however, remains intact, meaning that we reiterate our fair value of SEK 50. We believe that currency concern could stifle the upward trend in H1. On the other hand temporarily weak gross margins could provide an opening for investors. Although volatility is expected today’s more diversified sales could prevent a return to the bear case levels of 2014. Read the analysis below.

The full analysis in PDF-format: http://korta.nu/Zm4

This is a pressrelease from Redeye. Read more at www.redeye.se.