Q: Hi Peter
Can you provide me your current thoughts on GUD and its reported financials. Also do you think it is in an inflection point and would you buy at current levels.
Can you provide me your current thoughts on GUD and its reported financials. Also do you think it is in an inflection point and would you buy at current levels.
5i Research Answer:
We are liking the increase in revenue and the new momentum in the stock. We are not liking the higher SG&A costs, but if these can get under control then earnings growth could accelerate. EPS of -13c missed estimates of 2c; revenue of $107M beat estimates of $95.6M. EBTDA of $15.5M beat estimates by 23%. Guidance was raised (slightly) due to better first-half performance and new licences from Sumitomo. The stock is showing some life. We think the stock is 'buyable' today but we think investors have some time here. We would not really see it as a 'have-to-buy-it-now' scenario.