Q: Can you comment on the results of both companies. Do the results warrant the huge drops?
5i Research Answer:
Comments are now posted on KITS.
VMD EPS of 6c missed estimates of 9c; revenue of $75.4M beat estimates of $74.4M. EBITDA of $14.3M missed estimates by 5%. Guidance was very close to current estimates. Sleep and maternal health are showing good growth. The balance sheet is still quite strong and for the year EPS growth of more than 40% is still expected. The stock is up 14% YTD and we think the numbers are decent enough. Investors were expecting a larger guide up. The sell off was a bit harsh but the stock was up nicely and remains higher than market returns this year. We are comfortable here, though it is a small cap in a sector that is a bit out of favour, so has some higher risk attributes.