Q: Linamar recently reported. Please provide your assessment of their results? Any reason why the share price fell from its recent high, following earnings? What is your outlook for the company going forward?
Thank you fro your excellent assistance
Thank you fro your excellent assistance
5i Research Answer:
EPS of $2.61 beat estimates of $2.28; revenue of $2.55B beat estimates of $2.36B. EBITDA of $352M was 11% better than estimates. It was a solid quarter, with sales up 29%, cash flow up 55% and normalized earnings up 54.7%. It continues to win contracts, and EVs are become a bigger part of its order book. BMO did lower its target price, but CIBC raised it. The market has been weak, and some profit taking can always occur. But the quarter itself was solid, and the stock is up 18% YTD, well ahead of the TSX.