Q: Please comment on earnings. Would you add here? Thank you.
5i Research Answer:
EPS of 79c beat estimates of 60c. Revenue of $121M slightly missed estimates of $122.8M. EBITDA of $30M beat estimates by 22%. EBITDA rose 30%. Total revenue rose 12%. KXS maintained its revenue forecast of $483M+, but boosted its EBITDA margin forecast to 20% to 22%, from 19% to 20%. It is becoming more profitable, as noted in the EPS 'beat'. Net cash is $230M. The stock has lagged the sector this year, but this was a solid result. Very good EPS growth is expected in 2025. We would be OK adding some, up to a reasonable position size. We certainly would like to see better stock momentum here, but the fundamentals look good still.