Q: Hi there could you please comment on yesterdays earnings report and whether it’s at a decent point (given todays rise) to initiate a position for 3-5 years?
Thanks!
Thanks!
5i Research Answer:
EPS of $2.59 beat estimates of $2.06; revenue of $2.72B beat estimates of $2.65B. EBITDA of $386.9M beat estimates by 13.3%. It had 'favourable auto margin trajectory'. The industrial segment continues to do very well. Adjusted profit rose 31%. Sales rose 18%. This was a very strong start to the year, and impressive considering the 'less than ideal' economic backdrop. At only 7X earnings we think it is quite buyable today and might target a $68 entry price.