Estimate downgrades following the disappointing Q2 17 earnings release
TARGET CHANGE
CHANGE IN EPS
2017 : € 0.19 vs 0.24 -19.8%
2018 : € 0.20 vs 0.25 -22.7%

Following the Q2 earnings release, which saw a disappointing performance in the Terminals business, we have downgraded our expectations for the coming years. Revenues for 2017 are now expected to be €19.4m (vs. €20.2m previously), while 2018 is now expected to reach €21.3m (vs. €22.1m). Despite a higher gross margin, the bottom-line also suffered from a higher opex run rate, which resulted in a substantial cut in our EPS.


CHANGE IN DCF
€ 1.85 vs 2.47 -25.1%

Our DCF inputs have been left unchanged, but the cash generation mechanically suffered from our estimate downgrades, resulting in a decrease in our DCF-based valuation. The impact of the cut has been amplified by the fact that it originates from a weak performance in the Terminals business, which is a major contributor to cash flows compared to the Authorisations business.