Q: Hi 5i, may I have your thoughts on the quarter and fwd guidance. I've held this stock almost 8 years, and if the thesis is still strong then I will continue to hold. Thx.
5i Research Answer:
EPS of $1.34 beat estimates of $1.23; revenue of $2.04B missed estimates of $2.05B. EBITDA of $326M beat estimates by 6%. Revenue fell 10%, not unexpected. Free cash flow was good and margins 'were strong across all business segments'. Commentary was more positive than the prior quarter and operations/outlook seem to have at least stabilized here. While it may still have a tough year overall, with the stock decline already embedded this year and negative sentiment we think it is in the process of bottoming and would remain comfortable holding. The company discussed its strong balance sheet and the possibility still of making deals this year. Nothing too exciting here, but depending on how the economy proceeds the worst might be over.