Q: What are your thoughts on CURA based on their last quarterly results?
5i Research Answer:
EPS of ($0.06) slightly beat estimates of ($0.061) and revenues of $315.0M missed estimates of $315.55M. Sales grew 1.5% compared to the prior quarter, and its adjusted gross margins were 49%, an increase of 1.2% compared to the prior year. Its international segment grew 62% year-over-year, but total sales declined by 8%. Margins are improving, and cash flows are beginning to ramp up, but its growth has begun to stall, and analyst estimates are trending lower. We think there are a few positives here, but largely, we think part of the rapid rise in price is due to a short squeeze on the space. We remain cautious here, but there are a few positives that we will keep an eye on.