SDVKY - Sandvik Outperforms On Margins But Weak Industrial Orders Are A Concern

• Sandvik posted a pretty decent beat at the operating income line, but SMS results were noticeably weak at the revenue and order lines.
• Demand from the aerospace and oil/gas end-markets remains very weak, while auto and general industrial demand is recovering.
• Mining was better than expected, with better margins and revenue, and surprisingly strong new equipment orders offsetting a 9% decline in aftermarket orders on ongoing COVID-19 pressures.
• Sandvik shares are starting to look more interesting on a relative basis as a short-cycle recovery story, but I'd like to hear what management has to say about its long-term strategy before getting more bullish.

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