Q: Hello Peter,
CSU's results did not beat estimates , yet stock is up. If other companies had similar results, the response in the market may not be that great. Is it due to constellation's history of being a good capital allocator? I saw this article on yahoo, link provided with an extract ,
"Toronto-based Constellation reported third-quarter financial results after the closing bell on Friday, booking a higher profit on an annualized basis, topping analyst expectations. Revenue for the three months ended Sept. 30 fell shy of estimates, while rising nearly 20 per cent year-over-year to US$2.5 billion."
https://ca.finance.yahoo.com/news/dubbed-canadas-berkshire-hathaway-constellation-softwares-stock-seen-hitting-new-all-time-high-162056191.html
Question,
Could you explain the higher profit that exceeded the estimates in the above extract? Thanks very much
CSU's results did not beat estimates , yet stock is up. If other companies had similar results, the response in the market may not be that great. Is it due to constellation's history of being a good capital allocator? I saw this article on yahoo, link provided with an extract ,
"Toronto-based Constellation reported third-quarter financial results after the closing bell on Friday, booking a higher profit on an annualized basis, topping analyst expectations. Revenue for the three months ended Sept. 30 fell shy of estimates, while rising nearly 20 per cent year-over-year to US$2.5 billion."
https://ca.finance.yahoo.com/news/dubbed-canadas-berkshire-hathaway-constellation-softwares-stock-seen-hitting-new-all-time-high-162056191.html
Question,
Could you explain the higher profit that exceeded the estimates in the above extract? Thanks very much
5i Research Answer:
CSU was upgraded today at Raymond James, with a target of $4550. The Yahoo difference looks like it is reporting adjusted earnings. CSU does not release adjusted earnings numbers, so Yahoo has gotten this information elsewhere. Our data shows an EPS on both an adjusted and GAAP basis. But the company is such a good compounder, investors tend to pay little attention to quarterly numbers.