Q: Analysis on the quarter and outlook.
Thanks Greg
Thanks Greg
5i Research Answer:
EPS of ($0.04) missed estimates of $0.0546 and revenues of $711M missed estimates of $814.63M. Revenue was steady, it showed strong gross margin improvement (up to 12.2%) and positive free cash flow of $2M. A few key drivers include a record $12B backlog (up 53%), and its Adjusted EBITDA improved to $53M. It anticipates stronger Q4 performance despite supply chain challenges. The stock remains under pressure despite its OK results, mostly due to its continued high debt levels. Management anticipates improvements to revenue, gross profit, and Adjusted EBITDA, but we are not huge fans of its recent negative momentum, and overall we would prefer for the name to find a floor before getting more interested.