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  5. CHR: What is your opinion of this company and it's recent earnings report? [Chorus Aviation Inc. Voting and Variable Voting Shares]
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Q: What is your opinion of this company and it's recent earnings report?
Thank you
Asked by Chant on November 18, 2024
5i Research Answer:

CHR recorded a nice beat on earnings estimates of 2c coming in at 6c. Revenue missed estimates of $356.55M coming in at $342M and declined 9.5% year-over-year. Adjusted EBITDA from continuing operations of $53.9M, decline 3.9M from the prior year period. The company is working to sell its regional aircraft leasing (RAL) business which is expected to be complete at the end of the year which should help with paying down debt. Earnings for the quarter were OK with revenue declining as a result of lower aircraft leasing revenue from a change in lease rates. Leverage is still very high here but the business has been generating solid cash flows for a few years now. If it can lower debt and start to grow earnings, it could be an OK value play at 10x forward earnings, but we are not very interested as it CHR stands right now.