Can you please comment on the results of the last quarter.
What is your perspective on this stock ? Is a hold or sell ?
Do you recommend averaging down ?
Thanks
EPS of $0.93 missed estimates of $1.04 and revenues of $2.54B missed estimates of $2.56B. Free cash flow of $346M increased over the prior year due to invested capital velocity improvement, and sales grew 5% for the year. Adjusted EBIT margins were 8.0%, down 2.3% from the prior year largely due to lower margins in its Canadian business. Shares of FTT have been largely trending up/sideways over the past year, with periods of sharp drawdowns like the recent one. Analyst sales estimates have been rising, but earnings estimates have declined recently. It is cheap, but growth is also expected to be fairly minimal. We think it looks OK, but not overly compelling. For ane existing position, it is a decent spot to average down, however, we would prefer to see if shares can find support here.
Overall, we prefer TIH as part of a long-term holding.