Q: Hi 5i,
What are your thoughts of the quarter? Would you hold / add / sell?
Thanks,
Kyle
What are your thoughts of the quarter? Would you hold / add / sell?
Thanks,
Kyle
5i Research Answer:
Revenue of $168.7M marginally missed estimates. EBITDA of $75M matched estimates. Revenue rose 12%. Service revenue was good at +14% but professional services and other revenue fell 9.2%. Licence revenue was also weak. EPS was 41c, up from 40c last year but below 50c estimated. Margin was 76% vs 77%, estimates 76.5%. With tariff and other uncertainty, DSG plans a 7% workforce reduction. A bit disappointing here for sure. The stock is up 24% in a year but fell 8% after hours. The cost-cutting efforts will save $15M over time. Some weakness was to be expected considering its focus on logistics. We would not panic on these numbers and would see it as a HOLD right now.