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  5. TIH: Can you please comment on TIH's recent quarterly earnings. [Toromont Industries Ltd.]
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Q: Can you please comment on TIH's recent quarterly earnings. In what order what you add these industrials for a long term hold: TFI, TIH, WSP
Asked by Matthew on November 06, 2024
5i Research Answer:

EPS of $1.59 missed estimates of $1.68; revenue of $1.33B beat estimates of $1.26B; EBITDA of $227M  missed estimates by 3.3%. Equipment pricing was partly to blame, but margins also declined despite a 14% increase in revenue. Some brokers lowered target prices. Operating income fell 9.4%. The company noted that residential and rental markets remain challenging, offset by strength in mining. All-in, we would not consider these a disaster, but more of a normalization of margins and growth, after strong prior results. The stock dipped, but we would consider it still decent for the long term. It may not do much in the short term but is up 11% over one year. TIH'S valuation at 19X earnings is about 3 points lower than its 10-year average currently. For adding, we would see this order: WSP, TFII, TIH.