Q: hi folks, opinion on Q results & guidance for Headwater Energy HWX/T....look pretty good..Desjardins has a "Top pick in small cap space"...Buy/Hold/Sell....thanks, jb
5i Research Answer:
HWX EPS was 19c, well ahead of 13c estimates; Revenue was $131.7M, 2.8% below estimates. EBITDA was $113M, well ahead of estimates $82.7M. Sales rose 28%. Diluted EPS rose 12%. Production rose 28% and beat estimates. Free cash flow was up 4X+ to $51.9M. Guidance was increased and some brokers raised their recommendations. The stock is cheap at 11X earnings. There is cyclical risk here but market cap is now over $1B and we would consider it buyable.