Q: Kindly comment on the DBM results released last night, the report seems to be kind of sketchy I take that as a negative sign. Your thoughts?
5i Research Answer:
EPS of 10c missed estimates of 11c; revenue of $707M marginally missed estimates. EBITDA of $51.9M beat estimates by 3%. Sales rose nicely in the quarter. Margins were 16%. Some earnings growth is predicted for 2025, but there is lots of uncertainty. We would also note that even with improvement, 2025E earnings will be less than they were four years ago. The balance sheet remains somewhat stretched as well if we look at all obligations. The stock is cheap, but we would not see it as a need to own stock in this environment.