Q: Hello, can you comment on their latest earnings? Thanks
5i Research Answer:
EPS of $2.34 missed estimates of $2.44; revenue of $1.607B matched estimates. EBITDA of $245.1M missed estimates by 3%. The miss was driven by weakness in the engineering and investment management business, primarily. The outlook for 2026 was slightly above estimates but investors focused on the quarterly miss. Revenue rose 7%. EBITDA rose 8.8%. Not a disaster quarter, but the miss will add to investor worries about AI-competition. The stock is not expensive at 14x earnings but momentum of course is quite negative. 10%-plus earnings growth is still expected this year (consensus). We would not sell into the decline today but we think it may not do much for a period of time while investors digest this quarter and the ongoing AI scares.