EPS of $0.50 slightly missed estimates of $0.504 and sales of $850.77M missed estimates of $946.31M. The quarter was impacted by temporary project delays as its clients adapted to rapidly chaning market conditions. Its next quarter is expected to be impacted by similar delays, and this caused some analyst price target cuts, which led to its price decline. Sales and earnings declined year-over-year, and while its gross margins expanded, it was not enough to offset the decline in sales. It has had a strong run since 2023, but with a slowdown in future growth expectations, we think investors will need to be patient on this one. It is priced decently at 10X forward earnings and 0.4X forward sales, but investors will likely want to see growth expectations resume their upward trend before the stock can see positive momentum again.
5i Research Answer: