Q: Thoughts on Park Lawn earnings? Looks like misses across the board yet the stock is up 10% today?!?
5i Research Answer:
EPS of $0.337 beat estimates of $0.325 and revenues of $117.305M missed estimates of $118.626M. Sales grew by 4% for the quarter, primarily as a result of Acquired Operations. The quarter was up against tough comparables from last year, and management is pleased with its relative performance. Net earnings and Adjusted EBITDA declined for the quarter, but the company grew its balance sheet due to solid free cash flows. We feel that investors were reassured by its decent relative performance against a tough comparable quarter, and analysts are encouraged by its ability to grow through future acquisitions.