Q: Your comments please regarding Altus Group Ltd.
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Thanks.
5i Research Answer:
Results were much worse than expected, reflecting the slowdown in the real estate market. The stock dropped sharply, its most ever. EPS of 33c missed estimates of 48c; revenue of $185M missed estimates by 6%. Four brokers lowered targets. Concerns surround the weak commercial real estate market, which is limiting capital deployment, and customers are less willing to spend on analytics services. The company is also borrowing money to finance its Situs real estate valuation acquisition. Revenue did rise 4.2%, but EBITDA fell 10% and margins compressed. We note the stock is still 23X earnings and considering weakness we would expect the stock to struggle a bit more after these results.