Q: While not necessarily an unqualified success, VGCX’s year-end for 2023 seemed pretty good to me. Is the recent drop an over-reaction or am I missing something?
5i Research Answer:
The problem is execution. The company is developing a reputation for never hitting estimates. This quarter, EPS was 76% lower than expected. Revenue missed by nearly $10M. It did meet production guidance, so grades and costs hurt the bottom line. Production rose 11%, which is a positive. The stock is very cheap and growth is expected. But debt is high and the company needs to promise less and deliver more.