Q: Thoughts on earnings release and what might be a good entry point if you recommend starting a position? Thanx
5i Research Answer:
EPS of 89c beat estimates of 82c; revenue of $634.3M marginally missed estimates of $638M. Sales fell 0.5%. EBITDA of $9.19M rose 3.9% and beat estimates by 4%. Margins improved due to cost savings, and this helped earnings rise despite slightly lower sales. With consensus showing 25% growth next year in EPS, we think it is attractive currently at 15X earnings with a 3.41% dividend. We would be comfortable buying today.