Q: Your thoughts after first quarter release?
5i Research Answer:
EPS of 8.7c beat estimates of 6.4c. Revenue of $358.3M beat estimates by 3%. EBITDA of $65.6M also beat by 3%. Revenue rose 28%. Free cash flow was $32.9M but leverage remains very high at 4.4X. Six practices were acquired. Guidance was muted and with no sale of the company investors were disappointed. DNTL concluded its strategic review, determining to remain independent. The decline makes it more interesting, but it is still not cheap at 33X earnings. But consensus still calls for nearly 50% EPS growth next year. We might be more interested here if it drifts a bit lower.