Q: Please comment on Terravest earnings/guidance.
Is it a buying opportunity ?
Thanks
Is it a buying opportunity ?
Thanks
5i Research Answer:
EPS of $1.50 beat estimates of 52c; revenue of $408M however missed estimates of $441.4M. EBITDA of $67.8M missed estimates by 14%. Compressed gas revenue missed estimates and the company noted tariffs are causing customer uncertainty. HVAC/datacentre revenue was not enough to offset gas weakness. The company remains well-positioned for the future, but it is not really a cheap stock yet. This quarter is not fatal, but with some high debt we think it may drift lower in the short term. We think buyers can wait a bit here.