Q: Comments on earnings, please. Stock is taking a beating. Is this a buying opportunity or a sign that one may want to use money elsewhere, and if so what would be some suggestions.
5i Research Answer:
EPS of 11c (GAAP accounting earnings) from 40c and compares to estimates of $1.01 (adjusted); revenue of $184.9M missed estimates of $196M. EBITDA of $17.65M missed estimates by 13%. Revenue rose 11%; cash flow was $10M. Backlog increased to $1.2B. Results are underwhelming. The stock is very cheap, and the company is still in a net cash position. We would consider it a HOLD on valuation but would not see it as high growth. Some other ideas: DSG, PRL, GSY, TRI