Q: Hi Peter, I just started a position in Enghouse. I thought it looked oversold and attractive on free cash flow per share and it’s 4% yield. Also they are beginning to become more acquisitive. Can I get your thoughts on the latest qtr and do you think it is attractive at these levels.
5i Research Answer:
EPS of 40c beat estimates of 37c; revenue of $124M missed estimates of $126M. EBITDA of $33.1M missed estimates of $35.7M. EPS rose from 33c last year. Revenue rose 2%. The dividend was increased 15.4%. A mixed quarter vs estimates, but at least it is still growing. The stock is cheap by historical standards. The dividend is very nice and likely secure. The stock has done very little for some time, but we do think it is starting to look better now.