Q: What did you think of MDA's quarterly report and would you be a buyer of half a position at this point?
Thank you
Thank you
5i Research Answer:
EPS of 35c beat estimates of 34c; revenue of $409.8M beat estimates of $403.2M. EBITDA of $82.8M beat estimates by 6%. Guidance was affirmed. EBITDA margin rose 20.2%, 0.9 points above estimates. Backlog was $4.39B, lower than estimates ($5.13B). Revenue rose 45% from last year. This was a good quarter and the stock has responded, but investors are still concerned about potential contract losses. We would be fine buying a partial position today.