Q: Good morning,
Could you please comment on CCO's earnings and would you buy on this pullback?
Thank you
Could you please comment on CCO's earnings and would you buy on this pullback?
Thank you
5i Research Answer:
CCO reported a big miss for Q1 with EPS of 13c missing estimates of 34c. Revenue also missed estimates of $750.9M coming in at $634M declining 7.7% year-over-year. CCO swung to a net loss in the quarter of ($7M). The company stated that its results were driven by normal quarterly variations in contract deliveries in its uranium and fuel services segments, as well as the addition of Westinghouse. Despite the evident weakness and misses on expectations, CCO maintained outlook for 2024 which is relatively positive. We would hold following these results as the stock is still expensive at 45x forward earnings.