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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH $2,291.84)
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ONEX Corporation Subordinate Voting Shares (ONEX $107.03)
Could you please comment on their recent quarterly results and where you see the stocks in the next 12 months?
Where would be a good entry price?
Thank you
Robert
ONEX EPS of 57c missed estimates of 78c; EPS fell from $1.68 last year. Revenue was $123M, down from $194M. Distributable earnings fell to $111M from $267M last year. ONEX's earnings vary widely with its deals and monetization. We would not consider the 'miss' as overly noteworthy. The company made positive comments about potentially more insurance deals. We think the stock has the potential for a 15% or so gain, and is buyable in the $105 range.
FFH EPS of $52.04 beat estimates of $51.61; revenue of $8.26B beat estimates of $7.57B. Underwriting was strong, with gross premiums written at $8.26B, and insurance revenue well above estimates. Investment gains were $426M and the overall results look good. We think it also has about a 15% gain potential from the $2200 range.