Q: Please comment on EIF's latest Q and acquistion of Spartan Mat on Nov7,and going forward Reached $57.69 ATH on Nov 8,then retreated to close at $55.87 - .02 .Buy/add,Hold or Trim. Txs for U usual great services & views
5i Research Answer:
EPS of $1.29 beat estimates of $1.21; revenue of $709.8M missed estimates of $750.7M. EBITDA of $192.9M beat estimates by 3.4%. Revenue rose 3.2%. EBITDA rose 15%. EBITDA 2025 guidance calls for $690M to $730M, vs estimates $705M. 12-month payout ratio is solid at 60%. We are quite comfortable here. The $120M Spartan deal looks good. EIF is already in the sector, and only $18M in shares are part of the compensation, so there is not a lot of dilution here. Its recycable composite mats allow for cheaper transportation and have other benefits to customers. The deal is accretive.