Q: Your thoughts on the quarter please for Drx
5i Research Answer:
EPS of 55c beat estimates of 39c; revenue of $80M slightly missed estimates of $80.4M. EBITDA of $24M beat estimates by 26%. Earnings rose 60% year over year but sales fell 2.5%. DRX received approval to buyback 1.77M shares in the next year. Margins improved six points to 30.4%, with better absorption of fixed costs and benefits of automation. Backlog fell to $330.3M from $510.9M. Share count fell to 29.87M from 32.64M. The quarter was mixed. We do not like the sales drop, or the backlog drop, but profitability is improving nicely.