Q: Q3/25 reported in November, EPS declined 26% vs. Q3/24. Can you go over the Q in more detail and advise whether fundamentals have changed. I am a holder of this company and had been thinking of adding since it has declined from its high of $134 in August. Would you be comfortable adding or do you see more attractive financial names? Thank you.
John
John
5i Research Answer:
OLY reported a 6% sales decline year-over-year, and net profits declined 26%. Its service revenue growth increased modestly, driven by higher activity in areas like investment account services, but its trust, interest, and other income, segment declined due to lower interest rates on trust fund placements, and this impacted its top-line. Its sales and profit declines mostly reflect continued pressure from lower interest rates, but it continues to have an attractive yield of 6.3%, margins are slipping, but still elevated, and free cash flow is decent. We think it is an attractive name long-term, and we would be comfortable holding and slowly adding here.