Q1 - some good, some bad I was disappointed with EPS of only $0.36 which is (66%) drop from Q1 last year. Poor.
The increase in Backlog to $14.9 is very welcome news, but I don’t understand. I thought that when they got new orders, they got a big deposit which improved FCF and they could use to pay down debt. But the FCF usage was negative ($387). Poor. And nothing was applied to debt in Q1. Any comments on this welcome.
The aftermarket business looks excellent going forward with good and improving margins. And defense sector can be another winner.
The market focused on management commentary and promises of stronger margin growth overall for the year. Market is always forward looking, as the fella said.
Hold on to your shares. I think it will be a good year. My target for year is $87.
All the best.
Snowey.