Q: Do you have any opinion on this company latest result ?
5i Research Answer:
EPS of $1.26 beat estimates of $1.24, and revenues of $357.17M missed estimates of $411.72M. Sales declined 13% year-over-year, its adjusted EBITDA margin was 19.2%, but free cash flow did climb significantly to $111M on a 12-month trailing basis. Management guided lower for its outlook, and analysts lowered their price targets as a result. Its US farm outlook is concerning investors, and there are also fears of impacts from US tariffs. Shares have mostly traded sideways since 2010, and although it trades at a cheap valuation, we are not huge fans of the weak momentum, and declining analyst estimates. We would prefer to stay on the sidelines for now.