Canaccord Adjusts-G&M Citing “reduced return expectations” after its 2022 guidance missed his forecast, Canaccord Genuity analyst John Bereznicki lowered Superior Plus Corp. (
) to “hold” from “buy.”
After the bell on Thursday, Superior Plus reported fourth-quarter 2021 results that fell largely in line with the analyst’s estimates. Revenue rose 47 per cent year-over-year to $824.9-million, while adjusted earnings before interest, taxes, depreciation and amortization slid 1 per cent to $142.2-million.
“These results reflected warm U.S, weather and a reduced CEWS contribution, which kept fourth-quarter EBITDA just below the prior-year figure of $144.1 million,” said Mr. Bereznicki. “Superior deployed net capital of $59.6-million in Q4/21 to exit the quarter with in-line net debt of $1.6-billion.”
With the results, Superior issued 2022 EBITDA guidance of $410- to $450-million, which fell below both the analyst’s $470-million estimate and the consensus forecast of $479-million.
“This guidance assumes a Q2/21 Kamps closing and no contribution from future acquisitions (in line with our modelling although we believe higher-end Street estimates likely assume prospective acquisitions), said Mr. Bereznicki. “Superior intends to deploy additional acquisition capital of $200 to $300-million this year and is increasing its targeted leverage range to 3.5 times to 4.0 times EBITDA as it executes on its five-year growth plan.:
After lowering his 2022 and 2023 earnings projections to account for the release, he cut his rating for its shares and his target to $14.50 from $16.50. The average on the Street is $15.67