Q: Would appreciate your comments on TH quartly report. Profit for a change. Thanks
5i Research Answer:
EPS of 6c beat estimates of 2.9c; revenue of $22.6M missed estimates of $24.0M. EBITDA of $7.23M beat estimates of $4.56M. F2024 revenue guidance was $83M to $85M, inline with estimates of $84M. Total revenue rose 8.4%, with EGRIFTA up 26% and Trogarzo down 22.9%. There is a risk of a supply issue in 2025 with its manufacturer closing (voluntary) for an FDA review. While results are generally fine, and we like the EPS beat, annual cash flow remains very low, and with its small size and debt there is really not much excitement here. The stock is not cheap and it could be vulnerable to tax-loss selling into year end. We would not miss it if it was sold for something larger and with more growth.