Q: What is your opinion on earnings announcement?
The market has punished the stock - is this a buying opportunity?
The market has punished the stock - is this a buying opportunity?
5i Research Answer:
Loss of 6c per share missed estimates of -2.4c. Revenue of $59M missed estimates of $63M. EBITDA of $10M missed estimates by 4%. The loss did narrow from last year but revenue declined and STC also lowered its 2025 revenue forecast from $250M+ to $235M+. EBITDA guidance was also moved lower. While not really a 'disaster' with another loss forecast for this year and the fact that STC has missed before, and has debt, we do not think investors need to rush out and buy this one. We would wait for some price consolidation and settling.