Q: Hi Peter, Can you provide your feedback on GUD's results. And what do you think of forward prospects. It seems to be getting some traction. I still think this is a top quality management.
Thanks
Thanks
5i Research Answer:
We do not think management is bad, it is perhaps rather a question of impatient investors vs patient executives. EPS of 9c cents beat estimates of (nil). Revenue of $133M was 12% better than estimates. EBITDA of $24.4M was 78% better. The stock is up 6% YTD. The balance sheet and cash flow remain good. Revenue rose 37%. EBITDA rose 63%. Gross margin at 49% rose 7 points. Guidance for the year sales of $490M is ahead of estimates ($468M). Results reflect the Paladin and Sumitomo acquisitions, primarily, and good integration, offset by weakness in branded generic products. But a good quarter overall, and the growth continues in fundamentals.