Q: What's your assessment of JWEL's earnings report? You've been cautious on the stock, especially in regard to entry timing, what do you think now?
5i Research Answer:
EPS of 35c beat estimates of 31c; Revenue of $151M beat estimates by 3%. EBITDA of $31.8M beat by 6%. A buyback was announced. Sales guidance was raised, which was impressive after a 15% increase already in Jamieson Brands. Total revenue rose 9.1%. Margins expaned 1.2 points. We were cautious most of this year, as results were disappointing. Shares are still down 26% YTD. Leverage is still fairly high (7X cash flow). It was a good quarter and forecast, but we think we would still wait to see how tax-loss selling goes here.