Q: Your thoughts on the recent earnings? Had a nice gain, should I hold, add, or sell to move onto another name in the sector? What would you recommend? Thank you
5i Research Answer:
EPS of 17c beat estimates of 16.7c; revenue of $244.1M beat estimates of $240.5M. EBITDA of $37.6M beat estimates by 4.6%. EPS fell from 22c last year. Sales rose 29%. A 5% share buyback was announced. The next quarter is the seasonally-weakest. About 35% growth is expected in EPS in 2026. The balance sheet remains strong with $32M net cash. Valuation has moved up to 17X earnings (2026) but we would be fine holding on that valuation and growth rate. Considering how well its customers have done this year, the likelihood of higher-than-expected revenue growth next year looks quite good overall.