EPS of $0.29 beat estimates of $0.282 and revenues of $1.22B beat estimates of $1.17B. Sales grew 12% year-over-year, and EPS rose significantly from the prior year. It saw strong demand for pilot training and simulation products, and it also demonstrated growth in military training and mission support services. Several analysts increased their price targets on the name, and we are encouraged by its expansion in defense margins. We like its price action, margins are healthy, and free cash flows are strong. It trades at an OK valuation of 29X forward earnings, and given the potential for a reversal in its trend and growth in fundamentals, we would be comfortable initiating a position today, while being mindful of position sizing, and the potential for consolidation here.
5i Research Answer: