If you could please comment on the recent quarterly results. Would you recommend starting a position (RSP with a long time horizon)? Why or why not?
Thank you.
PLC reported revenue of $85.3 million, up 12.4% year-over-year, missing estimates of $86.5 million. Adjusted EBITDA of $18.8 million rose 21% year-over-year but missed estimates of $19.7 million. EBITDA margin rose from 20.6% in the second quarter of 2022 to 22.1% in the recent quarter. Adjusted earnings per share of $0.22 came in line with estimates and rose 16.8% year-over-year. Mortality rates in the US are declining, or more normalizing after the rates during the pandemic years. The second quarter cyclically is the weaker quarter for the company. A competitor revised down 2023 guidance by 3% for EPS citing lower pre-need cemetery sales and higher borrowing costs. We don't think this quarter had any major takeaways and continue liking the name for the long-term. We would be fine starting a position.