Q: Good Morning
Your opinion please on Hammond’s lates test quarter and the ongoing issue of share based compensation.
Thank you
Your opinion please on Hammond’s lates test quarter and the ongoing issue of share based compensation.
Thank you
5i Research Answer:
EPS was $2.20, beating estimates of $2.01; revenue of $201.4M missed estimates of $213.2M. EBITDA of $30.91M missed estimates by 12%. Sales rose 5.6%. Margins slipped 0.2 points. Backlog rose 18.9% year over year and 17.7% consecutively. Stock expenses cost the company about 60c a year in EPS. Investors do not like this but it is fairly hard to avoid with a growing company. The stock is flat so far today. We are comfortable here and like the growth potential and valuation right now. Tariff impact was not specifically noted in the release.