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  5. CGY: What do you think of today's results/announcement? [Calian Group Ltd.]
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Q: What do you think of today's results/announcement?
Asked by John on May 15, 2025
5i Research Answer:

EPS of 93c missed estimates of $1.18; revenue of $193.7M missed estimates of $200.3M. EBITDA of $17.4M missed estimates by 24%. The stock fell the most in 25 years as the company also pulled its guidance. Revenue year to date fell 15%, with tariffs adding lots of uncertainty for clients. It continues to buyback stock, with a plan to cancel 6% of the shares in fiscal 2025. The AMS acquisition looks solid. As a remote healthcare services provider it has limited competition and a 30 year operational history. We would not deem it to be hugely material however to CGY's $470M market value. The stock is very cheap, but with current events there is more risk than usual. The balance sheet has some leverage but not a worrying amount. We would consider it a HOLD after the decline, but would not expect much from it this year.