Q: Hi there, could there possibly be a fundamental shift in place now regarding SPB? Your thoughts on their 4Q and full year results please?
What did the markets like here to send the shares higher, or is this just a relief rally, especially on a volatile day?
Thanks!
What did the markets like here to send the shares higher, or is this just a relief rally, especially on a volatile day?
Thanks!
5i Research Answer:
Q4 EPS was nil, vs estimates of 15.7c; revenue of $502M, missing estimates of $769M. EBITDA of $113.8M missed estimates of $166.6M. It maintained its dividend, is buying back stock, and Raymond James upgraded the stock. The year was better than the Q4, with revenue up 10% and EBITDA down only 2%. The stock rose as EBITDA guidance for 2025 calls for 8% growth (higher than estimates) and the company's cost cutting program is expected to see savings of $20M. The stock is up on the year, and is likely putting in a bottom. It is hard to get too excited here, however, but the outlook has improved and we would focus less on the (very bad) Q4.