Q: Can you comment on the earnings and the outlook? Also if favourable, a price level to add to positions? Thanks
5i Research Answer:
EPS of 29c missed estimates of 34c; revenue of $285M beat estimates by 1%. EBITDA of $36.9M missed estimates by 2%. Revenue rose 9.3%. Net income rose 52%. Europe was strong (from a small base) but Canada was weaker than other areas. The balance sheet is quite strong and very good earnings growth is expected for the full year. The stock has done well and is now 18x earnings. For adds, we would suggest $24.25. It is a small company and can be cyclical so we would size accordingly.