Q: Your thoughts on earnings and guidance please. Is this falling into a value trap that at least on analyst has suggested?
5i Research Answer:
EPS was $2.35, beating estimates of $2.31; revenue of $2.63B was inline with estimates. EBITDA of $382.8M beat estimates by 2%. Sales did rise 8.3%. EPS rose from $2.21 last year. The industrial segment experienced 24% growth. LNR received approval to buy back 4 million shares. Cash generation was good. We would consider the quarter OK. The stock is very cheap but investors don't seem to care, worrying more about a recession, EV slowdowns, tariffs and/or anything else. EPS is expected to grow about 7% next year, and EPS is up 80% since 2021. But we have economic risk and a somewhat levered balance sheet. It will take likely take faster growth to get this out of the doldrums.