*Justin* schreef op 23 april 2013 09:42:
TomTom (Buy): 1Q13: Resilient automotive, strong margins
The facts: TomTom released first quarter results this morning. Outlook: "Full year outlook maintained of revenue of between €900 and €950 million, and adjusted EPS of around €0.20."
Table below, press release here:
bit.ly/TomTom13q1PDF Webcast (14.00 CET) and presentation pack here later:
bit.ly/TomTom13q1Webcast Our analysis: In the seasonally slowest quarter of the year, TomTom managed to maintain its strong gross margin performance of prior quarters. Consumer revenues continued their decline (-19% 1Q/1Q vs -23% 4Q/4Q), but automotive revenues were more resilient than we had expected (-13% 1Q/1Q vs 21% 4Q/4Q). The latter bodes well as a base for the recently announced contract wins.
Adjusted for last year's EUR 11m exceptional provision (malfunctioning chip), the gross margin widened one percentage point 1Q/1Q (4Q/4Q adjusted +3 percentage points). Management reiterated its outlook for both revenues and earnings,
which judging from this set of results still appears rather conservative.
Conclusion & Action: The strong margins and the better than expected resilience in automotive revenues confirm our view that TomTom management is overly cautious in its earnings outlook. Buy for the long-term prospects. Target EUR 5.