Q: Savaria missed on revs and EPS so it is weak on the open. Things seem to be moving in the right direction; org growth in North America Accessibility up 12%, Patient care also strong growth. Does this look like a company ready to accelerate profits in the next 12 months?
5i Research Answer:
SIS sales missed estimates by 4%, and EPS of 14c missed estimates of 19c. Revenue rose 3.3%, mostly organic revenue. EPS did rise from 13c last year. We agree the underlying strength looks better than the headline numbers. Analysts still expect a nice uptick in EPS next year (71c to 90c). The stock has (as of now) recovered from its 6% drop this morning. We continue to view it positively and the miss doesn't concern us too much here.