Q: Comments on earnings. Stock is moving up nicely. Would you consider it a buy?
5i Research Answer:
EPS was 5c, well ahead of estimates of 1.3c. Revenue of $168.2M matched estimates. EBITDA of ~$32M was 25% ahead of estimates. Free cash flow was $22.7M. TD raised its target price on the stock. Revenue rose 10%. Since June, it has bought back an impressive 2.7M shares, yet still remains net-debt free with cash at $26M. Growth is very high this year but is expected to slow to 10% next year. The stock is quite cheap at 8X earnings. There is small cap and cyclical risk here but otherwise it looks good.