Q: Your thoughts please on the Fourth Quarter and Full Year 2024 Result... and perhaps on the outlook for 2025. Thanks!
5i Research Answer:
EPS of $1.68 missed estimates of $1.77; revenue was $7.67B. In addition to the miss, investors fretted about a slowdown in the US, with insurance claims higher and more severe. This more than offset other regions' gains. The company's surplus capital also showed lower earnings. Dental was OK. Not a great quarter, but one quarter does not make a trend. Forecast still calls for 12% growth this year. If the US shows signs of improvement the stock could recover, but that may take a few quarters. This is not the disaster the stock drop makes it look like. We would HOLD, with a view to buy into any further weakness.