Q: Your March 2 2023 on the company seems relatively positive? But over the Summer/Fall less positive? (correct me if I have that wrong) If true, is it a reflection of real estate market/higher interest rates or execution of the company? Earnings were released on Friday, comment? If you were doing report card/ 5i Opinion today what would you change? Thanks!
5i Research Answer:
The 4Q showed EPS of 1c, beating estimates of (flat). Revenue of $11.2M was 3% short of estimates. EBITDA was positive. It was a decent quarter, but not as strong as the prior one. Our main concern comes from the business itself: US mortgage originations are very low by historical standards, and with rates high we would not expect a quick recovery here. The worst is likely over, but we would like to see better EBITDA, sales and earnings before turning more positive. EPS is expected to increase more than 100% in 2024, but still remains far, far below prior year levels. We would still maintain a B: there is potential still here, but also still risks.