Q: Hi, Could you please comment on CSu earnings. Thank you
5i Research Answer:
Revenue was $2.65B, up 13% , but missing estimates of $2.76B. EPS was $5.44, up from $4.95, but missing estimates $9.29. Note estimates are adjusted earnings here and CSU does not report adjusted earnings. Organic growth was 2%, net income rose 10%, free cash flow rose 14%. Acquisitions were $296M. Excluding some subsidiaries' impact, organic growth was 4%. The revenue miss stems largely from lower capital deployment (acquisitions) than expected. We are comfortable with these numbers. The stock has been very strong leading into this quarter, though, so it may check back a bit on a less-than-perfect print.