Alstom reported Q1 FY22/23 sales in line with consensus. Order intake decreased 13% yoy due to tough comparables. Management reiterated the outlook for FY22/23, which includes inflation weighing on margins and component shortages delaying deliveries. While the risk was mitigated in Q1, the uncertain macro environment is weighting on consensus estimates. No wonder the share closed c.-3%. We will trim our estimates but are likely to maintain a positive stance on the stock.
20 Jul 2022
Q1 trading in line; outlook marred by supply chain and inflation
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Q1 trading in line; outlook marred by supply chain and inflation
Alstom reported Q1 FY22/23 sales in line with consensus. Order intake decreased 13% yoy due to tough comparables. Management reiterated the outlook for FY22/23, which includes inflation weighing on margins and component shortages delaying deliveries. While the risk was mitigated in Q1, the uncertain macro environment is weighting on consensus estimates. No wonder the share closed c.-3%. We will trim our estimates but are likely to maintain a positive stance on the stock.