Please provide review of results and whether it is still holdable or are there better options.
Thx
EPS of $1.12 missed estimates of $1.81 and revenues of $224.42M beat estimates of $215.73M. Sales grew 13.8%, and its backlog decreased by 8% due to record sales, but its backlog is still 9% higher compared to the end of 2024. Its US and Mexico operations drove sales growth higher, driven by steady growth in the distribution channel and solid growth in the private label channel.
Its share-based compensation did negatively impact this quarter's results, but it is an interesting dilemma, where a higher SBC pulls EPS down, which has historically negatively impacted its stock price, which then pulls SBC down for the future quarter, thus increasing EPS, which positively impacts the stock price.
When adjusting for SBC, its results were mostly inline or a slight increase against last years. We might expect the stock to consolidate for a bit before seeing some positive momentum again. It trades at 16X forward earnings and forward growth estimates are still OK in the high single-digit range.