Q: Can you comment on their latest results? Is there enough there to continue to hold or time to move on?
5i Research Answer:
EPS of (nil) missed estimates of 6.9c. Revenue of $362M matched estimates. EBITDA of $65.8M matched estimates. 1Q revenue is expected to increase 4.5% to $372M, short of estimates of $386M. Free cash flow is expected to rise by 15%. The stock continues to stuggle and was downgraded by Scotia. It is expected to show good earnings growth this year but its track record of 'beats' is not perfect. At 18X earnings, with high debt, no dividend and negative momentum, we think investors can move on and do better elsewhere.