Q: What are your thoughts about CJT most recent results? What are the prospects for this company going forward? Why is the stock falling so much?
5i Research Answer:
EPS of 32c missed estimates of 97c; revenue of $219.9M missed estimates of $241M. EBITDA of $70.4M missed estimates by 9%. It was, frankly, a horrible quarter and the stock reflects this. Profit fell 70%. Revenue decreased, with macro headwinds and tariffs causing customers to delay shipments. One of the co-CEOs is stepping back from duties. Analysts still expect about 15% to 20% growth next year. If tariffs are removed then the stock could do better. However we would expect analysts to lower forecasts after this quarter. The stock could see more selling going into year end and is probably best avoided for a period of time.