Q: I was very disappointed in Birds Q4 report out yesterday. I was expecting growth, but instead they had a 62 million impairment as well as project delays. Are you still positive on thiere growth prospects? Is it a buy, hold or sell?
5i Research Answer:
EPS (adjusted) was in line with estimates at 57c; Revenue of $877M did miss estimates of $935M. EBITDA of $66M beat by 2%. The stock hit a new high on the news and is up 19% YTD. Three brokers raised their target prices. Revenue fell 6.4%. The backlog is a record $5.1B, with an $11B 'pending' backlog. Cash flow was $67M. The impairment charge is non-cash. We would not consider things so bad here. We would give it a HOLD simply due to the gains so far this year, so the stock could consolidate a bit in the current weak market backdrop.