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  5. LMN: Does the negative EPS on LMN concern you at all or do you feel that the revenue growth is / will be fast enough to warrant continued confidence? [Lumine Group Inc.]
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Q: Does the negative EPS on LMN concern you at all or do you feel that the revenue growth is / will be fast enough to warrant continued confidence?

Rough figures taken from RBC Chart: EPS is approximately -$30 and revenue has grown to $140M.

Thanks!
Asked by Robert on June 25, 2024
5i Research Answer:

LMN's reporting is a little confusing and the large net losses on the financial statements are due to the accounting treatment for CSU’s preferred shares converted into common shares. LMN actually operates a relatively high margin business and in the most recent quarter, gross margin was 92.87% and EBITDA margin was 23.9%. Analyst forecasts for EPS in 2024 are 82c and $1.04 in 2025. 

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