Thanks Rob
In Q3-2024, LNF’s sales came in at $651.9M, slightly missing the estimate of $678M, and EPS came in at $0.54, which also missed the estimate of $0.55. The results were a slight miss relative to expectations. However, fundamentally, LNF is doing fine and just raised its dividends recently in Q2. LNF managed to grow same-store sales for three quarters in a row until this quarter when it turned negative by -1.4%. LNF is a mature company; it is priced at a reasonable valuation, and it is expecting to grow by around 3% over the next few years on average. Although the slowdown in economic activity and immigration flow could be a near-term headwind for the business. We expect LNF to do fine over time.
Also, investors expect LNF to unlock the value of its real estate portfolio. Some of the upside potential for the real estate spinoff has been priced in, but we think attractive returns going forward will continue to be decent.