Q: Hi 5i Team,
Pls comment on Parkland Corp. earning report.
Buy , hold or sell?
Pls comment on Parkland Corp. earning report.
Buy , hold or sell?
5i Research Answer:
EPS of 60c matched estimates; revenue of $7.12B missed estimates of $7.63B. EBITDA of $431M missed estimates by 6%. EBITDA forecast for the year was cut to $1.70B+, down from $1.90B+. Sales fell 20% year over year, EBITDA fell 26%. The weakness stems from an unplanned shutdown at Burnaby, and unfavourable market conditions due to lower refining margins. PKI notes these are expected to continue for the balance of 2024. It is a very frustrating stock, but with its dividend yield of 4.14% and low valuation of 14X and it being 'probably' a takeover target, we would HOLD.