Q: Hi 5i
How do view CJT earnings today. How does this companys expected performance look going forward. Would 5i be interested in investing at this time. If so why or why not.... At what share price would you be interested....I have shorter time frame of 2 years.
Thx
How do view CJT earnings today. How does this companys expected performance look going forward. Would 5i be interested in investing at this time. If so why or why not.... At what share price would you be interested....I have shorter time frame of 2 years.
Thx
5i Research Answer:
Loss of 14c per share missed estimates of +83c. Revenue of $221.9M missed estimates by 10%. 4Q revenue fell $40M. CJT called 2023 a transitional year as it consolidated recent hyper growth. It is focusing on cost control in a more challenging operating environment. Overall EPS will see a sharp fall this year, before an expected 33% recovery in 2025. We do not like to see the revenue decline here, and the stock remains expensive because of its high prior growth. We doubt the stock does much this year, though would not consider it a disaster. Just a new environment for the company after big gains. We would consider it a HOLD, not an ADD, and would be more interested at a lower valuation, which would be sub $100/share.