Q: Has your view of the stock changed with the latest results stock down big today?
or would you recommend buying more to average out?
or would you recommend buying more to average out?
5i Research Answer:
The Q4 results were a mixed bag - EPS came in at $0.47 vs. estimates of $0.67, a 31% miss, though revenue beat at $293M vs. expectations of $284M. That kind of earnings miss on a stock that had run hard (all-time high of $82 in January) explains the selling. We still like the long-term story - hydrovac is a dominant niche with real infrastructure tailwinds - and at roughly 20x forward earnings with strong overall momentum, we feel there is reasonable upside from current levels. We would be comfortable buying here.