Q: Hi 5i Team.
Pls comment on North American Construction Group qrty earning and this company going forward.
Pls comment on North American Construction Group qrty earning and this company going forward.
5i Research Answer:
EPS of 78c missed estimates of 91c; revenue of $276M missed estimates of $309.6M. EBITDA of $86.88M missed estimates by 12%. 2024 earnings guidance was cut to $3.95 EPS from $4.15. BMO lowered its price target to $32. Revenue did rise 43% year over year. The first half was 'challenging'. The stock is cheap but considering its small size and high debt, and outlook, we think buyers can wait a bit here. Consensus calls for some growth in 2025, but this may be adjusted downwards as well.