Q: Huge drop today!! Any reason for this?
DON
DON
5i Research Answer:
CGY released 2Q numbers; EPS of 40c was nowhere near estimates of $1.04; Revenue of $166.5M matched estimates. Revenue rose 11%. Free cash flow was $11M. New contracts were $131M. Higher costs and investments hurt results, and the company has identified $8M in cost savings but it will take a charge to earnings. It also updated its guidance and sales are now expected to be lower than previously expected. CGY has a strong balance sheet and growth is expected next year. Not a great quarter but with the stock hit already and the low valuation we would see it as a HOLD right now.