Q: Peter and His Wonder Team
EFX just reported 3Q results...the stock skyrocketed today and was halted. Please give your opinion for the this action and what are the future implications. Thank you immensely.
EFX just reported 3Q results...the stock skyrocketed today and was halted. Please give your opinion for the this action and what are the future implications. Thank you immensely.
5i Research Answer:
The halt was a 'circuit breaker' halt after the stock popped 30% quickly. It did settle down. EPS of 5c beat estimates of 3.4c. Revenue of $778M beat estimates of $769M. EBITDA and guidance (not raised, just affirmed) was actually a bit disappointing, but investors focused on the record $1.6B backlog, which adds growth visibility. 2024 is a critical year for the company as it works through the EXTN integration. Revenue and margins were flat year over year. Debt is still high and the stock is still down 28% YTD. It was a decent quarter, though, but the excitement was probably a bit too much here. Still, very good EPS is expected next year, and if the company can execute, investors should pay more attention.