Q: XTC has just reported quarterly earnings . Your comments on earnings please . and thoughts on prospects for this company over the next 2-3 years . Thankyou .
5i Research Answer:
EPS of 16c slightly missed estimates of 17c; revenue of $164M beat estimates by 6%. EBITDA of $18.6M matched estimates. Net debt is now more than $120M. Sales were a record, up 27%. Profits rose less, as cost pressures are still an issue. Still, the sector is improving. Management noted the outlook is 'very favourable', pretty strong words considering economic concerns. EPS is expected to grow 25% this year and 30%+ in 2024. At 13X earnings, with a 5% dividend, this growth should get noticed IF it does materialize. There is size, debt and cyclical risk here, but the stock is starting to look better as its fundamentals improve.