EPS of 41c matched estimates; revenue of $125.7M missed estimates of $133.0M. EBITDA of $35.6M missed estimates by 9%. Cash is $263M. Sales were disappointing, hurt by a 5% decline at the IMG division. There has been some management turnover as well, with President Mifsud leaving. Revenue rose 2.1% year over year. EPS fell from 45c last year and EBITDA fell 6%. ENGH did spend $3M on share buybacks. Not a great quarter, and it is hard to get excited about 2% growth. The market typically overreacts, though, and we do not think the results justify an 11% drop, considering it was already down on the year and is 16X earnings, even considering the cash. For now, we would HOLD and not react here. But patience is thin, and we would likely consider an exit at higher prices after the initial panic drop.
5i Research Answer: