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  5. SIS: Please comment on earnings and future prospects. [Savaria Corporation]
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Q: Please comment on earnings and future prospects. It is down by over 5 percent today?
Thanks
Asked by satish on March 07, 2024
5i Research Answer:

SIS came in right at forecast for EPS on an adjusted basis at 19c and on an unadjusted basis recording EPS of 16c. Unadjusted net earnings were $10.9M, declining 2.7% year-over-year. Revenue beat estimates of $215.53M coming in at $216.84M and and grew 2.2% year-over-year. Organic growth for the quarter was 6.2%. The accessibility segment grew revenue at 4.3% in total and 9.5% organically, year-over-year respectively. Patient care saw year-over-year decrease in revenue of 5.4% and an organic revenue decline of 5.9%. Savaria said it expects continued strong demand in the Accessibility and Patient Care segments in its outlook for 2024. We see the results as OK and markets were likely concerned with the patient care segment lagging and the year-over-year decline in unadjusted net earnings in Q4. Full-year results were solid and SIS is still positioned to benefit from aging population tailwinds. We are monitioring the performance in the Patient Care segement which has seen growth slow and become flat at 3% year-over-year in 2023.