Q: HI, Comments on last earnings report please. The stock got a boost and seems cheap. I doubt the next Q will be as good, but analysts seem optimistic. Would it be a good entry point? I sold my holdings at $120 in Jan2024.
5i Research Answer:
EPS of $1.62 beat estimates of $1.02; revenue of $250M missed estimates of $255M. EBITDA of $80.8M matched estimates. Revenue rose 8.1%. Earnings rose 56%. Commentary implied that 'more goods would be coming into Canada from around the world to mitigate the uncertainty of tariffs'. The stock had a good bounce on the news but remains down 20% YTD. It is decently-priced at 14X earnings but there is still some economic risk here. We think $83 would be a decent price.