Q: What are your thoughts on this small cap that was at one time a high flyer?
Would love your analysis on there recent Earnings report and do you see some good things down the road?
Thanx as always
Gary
Would love your analysis on there recent Earnings report and do you see some good things down the road?
Thanx as always
Gary
5i Research Answer:
EPS of +27c nicely beat estimate of -26c; revenue of $54M missed estimates of $56.6M. EBITDA of $10.1M missed estimates by 3%. Revenue rose 16%. EBITDA rose 39%. Debt was reduced and free cash flow rose sharply. An asset sale did help financial metrics somewhat. Revenue is expected to grow next year, but consensus (only one analyst) does call for lower earnings in 2026. Debt was reduced, but very much remains on the high side. Insiders own more than 40% and shares are very tightly held. We do not 'dislike it' but considering momentum and its small size we think its valuation is too high for an endorsement right now.