Q: thoughts on the quarter - met expectations but small miss on eps?
is the US business now the growth driver ?
is the US business now the growth driver ?
5i Research Answer:
EPS of $1.28 missed estimates of $1.30; revenue of $1.70B matched estimates. EBITDA of $164.6M was 1% better than expected. A couple of brokers lowered their target prices. Revenue rose marginally but EPS had more leverage, moving from 76c to $1.18 on a GAAP accounting basis. US specialty foods saw organic growth of 13%, which is indeed very impressive and likely a future driver. Investors largely yawned on the release as the stock has been a laggard already. It is 18X earnings and we need to see some better exection here to justify the multiple.