XP Power: Demand Remains Strong; Earnings Upgraded
Edison | Oct 09, 2017 07:05AM ET
Hot on the heels of its recent US acquisition, XP Power Ltd's (LON:XPP) trading update confirms that strong trading continued into Q3. Q3 revenues were 35% higher than a year ago, with nine-month revenues up 34% y-o-y and 21% in constant currency. We revise up our revenue forecasts to reflect much stronger than expected trading in Q3, which results in normalised EPS upgrades of 5.7% in FY17e and 7.1% in FY18e.
Further acceleration in revenues
XP generated revenues of £43.7m in Q317, +35% y-o-y and +8% q-o-q, and ahead of our £37.4m forecast. For the nine months to 30 September, revenues grew 34% (21% in constant currency). Q3 order intake also remained strong at £44.1m, +26% y-o-y and -5% q-o-q, to result in a book-to-bill of 1.01x for Q3. For the nine months, orders grew 44% y-o-y (+30% in constant currency). The company saw particularly strong demand in North America, from semiconductor equipment manufacturers enjoying this year’s upturn in chip demand and healthcare companies placing orders for new programmes.
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