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Getinge’s underperformance since mid-January has forced us to adopt a MINUS rating for the share.
The company’s medium-term outlook remains attractive, buoyed by (1) strong momentum in product launches, (2) increasing exposure to recurring revenue, which is less sensitive to changes in hospital capex, (3) expansion in emerging markets, (4) margin improvements, supported by a more favourable product mix and restructuring, and (5) continued external growth. However, the short-term budgetary environment in the hospitals sector remains uncertain in both Europe and the US. The trend is set to remain weak in H1, and especially in Q1. Management expects the company’s Q1 results to show a year-on-year decline.
Getinge has just released its detailed 2012 results. There are no big surprises: the group had already announced its preliminary pre-tax net profit and like-for-like sales trend on 11 January. In light of the still challenging environment, management remains cautious and is anticipating organic growth of around 3% (similar to 2012). The company is due to hold an investor day on 8 February, at which it will give details of a restructuring programme in the Infection Control division. We confirm our PLUS rating for the share.
Following last Friday’s profit warning from Getinge, triggered by a drop in business in the latter part of the year, we have cut our organic growth and margin estimates for 2012 and the following two years. In an uncertain budgetary environment, the trend is likely to remain weak in the first half, entailing some degree of volatility in the share. However, we feel that management’s 2013 organic growth target (c. 3%) is achievable and the company’s medium-term outlook remains attractive (thanks to an increasing share of recurring revenue, an uplift in margins and external growth). After having placed the stock UR, we thus confirm our PLUS rating, with an investment horizon of 12 months.
Yesterday afternoon Getinge published Q3 results that fell slightly short of expectations. Its order book is still very healthy though, reassuring the market about prospects for Q4. Management has reiterated its targets for 2012, but did highlight a negative currency impact on results working out at around SEK70-80m. We confirm our PLUS rating on the shares.
Getinge has published its Q2 results, which fell slightly short of our expectations. Nevertheless, the exceptionally healthy state of the order book comes as a pleasant surprise and augurs well for the remainder of the year. Management is therefore reiterating its targets for 2012. Owing to a challenging environment in Europe, Getinge underperformed the healthcare sector (-6.7% in relative terms) ahead of the Q2 announcement. The health of the order book will reassure the market as to the H2 outlook and should allow the share to outperform over the coming months. We confirm our PLUS rating for Getinge and recommend a “buy” strategy.
Getinge has just published its Q1 results. No surprises because a pre-announcement concerning the net profit was made by the management on 11 April. The poor performance is explained largely by the evolution of demand in the Medical System division in North America. The management expects the trend to improve in Q2 and is confident that it can achieve its objectives in 2012. We maintain our PLUS code for this share.
Getinge held its Investor Day on Tuesday. Growth catalysts are still intact and will remain valid in the medium-term: greater exposure to recurring revenues, expansion of new markets, further margin improvement, small targeted acquisitions (technology, geographical zone). Getinge should continue to outperform the healthcare sector in Europe in 2012. We confirm our PLUS code for this share.
Getinge has just published its 2011 results. They are better than expected. The Q4 order book is robust (+4%). The management remains confident for 2012 and confirmed its target of better organic growth than in 2011 (i.e. 4.5% - 5%). In view of the anxieties over the trend of hospital investments in Europe, which had intensified in the past few weeks, this publication is reassuring. We confirm our PLUS code for this share.
Getinge has just published its Q3 results. They are slightly weaker than expected because of a less favourable product mix. However, the order book is progressing quarter after quarter and confirms the likelihood of strong growth in Q4. The management has maintained its organic growth target of between 3% and 5% in 2011 (with a position at the upper end of this range) and a more sustained trend in 2012 (at least 5%). We confirm our PLUS code for this share.
We confirm our PLUS opinion on Getinge. The company benefits from numerous elements to sustain its medium-term growth, notably a strong product launch dynamic, a significant presence on the emerging markets and continuing margins improvment.
Getinge has just published its Q2 results. Margins have increased by more than the market was expecting, confirming their upward trend and offsetting weak sales. The company’s management has reiterated expected 2011 organic growth of between 3% and 5% and set a new EBITA margin target of 22% for 2013-2014. While the publication of these results has not caused estimates to be revised upwards, it has reassured the market as to the group’s 2011 and medium-term outlook. We confirm our PLUS rating for this share.
We are strengthening our PLUS opinion on Getinge. The growth dynamic will improve in 2011. A return to a more “normal” trend is expected in 2012 (+5%-7%). The company should benefit from a progressive recovery of the hospital equipment market, numerous product launches and a presence on the emerging markets. Its margins should also continue to improve.
Getinge has just published its Q4 results. No major surprises because the pre-tax profit had already been pre-announced on 11 January. The margin progression is confirmed. The trend is improving by comparison with Q3 but remains weak. 2011 prospects, in line with expectations, point to organic growth rising by between 3% and 5%. The results should benefit from the improved margins. We maintain our PLUS code for this share.
Getinge has published rather mixed results. Announcements made by Siemens and GE, whose Healthcare divisions performed very well, held out the prospect of good figures for Getinge too. However, this turned out not to be the case. After verification, Q3 seems to be seasonally weak and a recovery is expected to follow in Q4. We remain confident about prospects for 2011, mainly because Getinge does not expect a slowdown to occur during this period and has therefore lifted one of the market’s biggest fears. PLUS.
We are giving Getinge a PLUS rating for several reasons: forecast worldwide recovery of hospital infrastructure construction, launch of several new products and potential for margin improvement, recovery of orders and debt reduction.
We are giving Getinge a PLUS rating for several reasons: forecast worldwide recovery of hospital infrastructure construction, launch of several new products and potential for margin improvement, recovery of orders and debt reduction.
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