Q: Can I get your thoughts on the most recent quarter? Would now be an ok time for someone who doesn't currently own the name to start adding?
5i Research Answer:
EPS of 42c missed estimates of 43c. Revenue of $481M was slightly above estimates of $477M. Sales rose 2%, with the US the highlight, up 6%. Cash flow was $55.7M. RCH bought back $18.6M in shares. Three recent acquisitions seem to be integrating well. Net earnings fell 21% year over year. The stock has been weak, reflecting negative sentiment on some consumer-facing companies. It is not particularly cheap at 23X earnings. The balance sheet is OK. Lower rates could help the stock, but we would like to see 20X or a better growth profile. We would not yet be in a rush to buy this.