CSU has experienced its biggest drawdown ever, but the quarter just reported was good. Sales of $2.94B marginally missed estimates, however. GAAP earnings were $9.89 vs $12.04 estimates. CSU does not report adjusted earnings. EBITDA was $807M. But it is the growth that should please investors. Sales up 16%. Organic growth up 5% (3% adjusted for currency). Net income up 28%. Cash flow of $685M, up 33%. $281M in new acquisitions (with deferred payments up to $134M more). Free cash flow up 46% to $529M. Recurring revenue was 75% of total revenue. The free cash flow number was a record for the company. Admittedly, these numbers are for the period ending Sept 30 and much of the investor concern has been after that date. But.....the key point is that the company continues to do what it has always done: make acquisitions, generate free cash flow, and then make more acquisitions. We have no reason to expect anything different going forward. Will these results stop the stock from declining further? We are not sure, but they should.
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