Q: Can you give your analysis of MAL's latest earnings report and your opinion of their prospects going forward ? .... Thanks Garth
5i Research Answer:
EPS of 3c missed estimates of 10c; revenue of $219M was 2% light of estimates. EBITDA of $19.2M was 7% short. Revenue rose $27M, with a 27% gain in the US. The company did renew its share buyback and the renewed contract with Boeing is positive, but the stock continues to drift. Debt remains high at 5X cash flow. Very good EPS growth is expected next year, but MAL has to execute better and deliver this growth. With weakened earnings, the stock is not cheap, so only better results are going to help it grow into its multiple.