Q: PXT recently announced production that was below analyst expectations, and the stock is down quite a bit today. In add-on, their forecast for 2024 is also light, although a bit of an increase over 2023. I'm surprised, as i bought this one for its strong growth prospects. What do you think of this company going forward? Can they still increase the dividend? buy back stock?
5i Research Answer:
We have some brief comments posted now; it is fairly surprising and may slow dividend increases. The company has spent a lot of its cash on buybacks and has $34M left (down from more than $400M) so we might not see a lot of buybacks, either. EPS is still expected to grow in 2024, and at 4X earnings we would be OK keeping it, but these results are disappointing for sure.