EPS of 15c did beat estimates of -25c. Sales of $1.1B beat estimates of $1.03B. EBITDA of $24.6M missed estimates of $26.85M. The issue here is cost inflation on fixed-priced contracts. Four fixed priced contracts added $2.8M to Q1 losses, and $120M for 2022. Lower traffic at the Bermuda Airport was also a factor (returns are driven by passenger levels). The backlog is strong and it announced a large freeway contract, but escalating costs are going to worry investors until inflation subsides or it can adjust contract terms (on new contracts only, most likely). Fixed-priced contracts are always risky. EPS is expected to grow in 2023, and the stock had a huge run so saw a lot of profit taking on Wednesday. At 16X earnings we do not have huge concerns, but it may drift as this news is digested.
5i Research Answer: