Q: Is there a problem with BYD? Why has it become a HOLD???
Many thanks.
Connie
Many thanks.
Connie
5i Research Answer:
BYD reported a decent Q3 with EPS coming at $1.00 missing analysts’ estimates of $1.12. Total revenue beat estimates of $730.6M coming at $737.8M and displayed +17.92% year-over-year growth. Adjusted EBITDA was $94M in Q3, up from $73M in the year prior. BYD is on track to meet their long-term growth goals, but same store sales growth has been less than expected. Banks have subsequently cut their price targets for BYD following Q3 earnings due to the expectation of declining sales and margins. We continue to like BYD and feel that it represents a good opportunity for investors with a long-term timeframe.