Q: Could you comment on the Q here for Savaria. Would you be comfortable purchasing here?
5i Research Answer:
EPS of 26c beat estimates of 24c; revenue of $223.2M matched estimates. EBITDA of $42.9M beat estimates slightly. Revenue rose 3%, earnings rose 30%. The quarter itself was fine, but SIS cut its forecast, seeing revenue in 2025 at $925M, vs estimates of $1B. This is still growth of 5%+. The company is blaming macro (economic) impacts and tariff uncertainty. AT 14X earnings and down 14% YTD, the price likely already reflects some of this concern. But the guidance will keep new buyers at bay for a period of time. We would see it as a HOLD today.