Q: Your thoughts on recent results for Polaris infrastructure. I hold a small position. If you don't see more than a stable future, I'm going to sell, take some loss and redirect the funds. Thank you as always for the excellent service.
5i Research Answer:
EPS of 5c missed estimates of 7.5c; revenue of $18.7M beat estimates by ~1%. EBITDA of $13.3M missed estimates by 1.7%. Energy production fell 11%. Revenue also fell, largely due to planned maintenance. With this, earnings fell by a wide margin. Decent growth is expected next year. Debt is fairly high, and at 19X earnings it is not cheap. We would consider it generally 'OK' but it is quite small and risky. We would not consider it a need-to-own stock and would not object to a SELL.