CSW's Q2 2024 results displayed EPS of $0.26, down ~13% year-over-year from $0.30. Revenue came in at $56M, displaying +23% year-over-year growth. Profit margin was 13%, down from 19% a year prior driven by higher expenses and net income was in turn down 15% from the year prior to $7.31M. The increased expenses in this quarter appeared to be driven from the acquisition of ABG. The acqusition of ABG does seem to be contributing to revenues positively, however CSW faced pressures due to higher costs from the acquisition. It may be another quarter or two for the bottom line to start expanding as a result of the acquisition and we do want to monitor this impact going forward. We think this was an OK quarter from CSW, but the profit and margin declines are something to keep an eye on. We think it is fine for the Canadian sector, but the choices are thin. It has not created long term value, with the stock down 34% in five years. We would prefer BYD, ATS, GSY and/or DCBO but these are all different sectors.
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