Sangoma Technologies Corp T.STC

Better Analysis

[retiredcf]

When asked if someone should buy, sell or hold. GLTA

STC beat sales estimates slightly by 2%. Met EBITDA estimates but missed heavily on EPS estimates of 6 cents reporting a loss of 33 cents. Sales were up almost double compared to last year due to the Star2star acquisition and the larger than expected loss was due to transaction and interest expenses from the NetFortris acquisition, which did not contribute anything to the quarter due to the timing of the closing. Supply-chain issues continued to weigh on gross margins, but only slightly in the 1-2% range. However, STC has been able to meet all customer orders. Overall it was not the best quarter, but certainly not a disaster. We think the company will navigate supply-chain issues well, especially as its revenues continue to become more service-based. We would wait for shares to settle before averaging down and would HOLD for now.  (5iResearch)

[Captain71]

“missed heavily on EPS estimates…”   thanks Wignall. Some of you posters here will have to get hold of 5i and other research firms to let them know profitability is not important for a company and lack of earnings is no good reason for companies like STC to be underperforming so bad. Let me know how that goes for ya? GLTA

[Torontojay]

I can show you a bunch of companies that are very profitable and are tanking. The company is not going down because it's eps is negative.  If history repeats itself, and the average bear market is about one year, then we are about halfway there with further downside ahead.  There have been 26 bear markets since 1929 and 15 of them have been recessions or slightly more than 50% of

[gwimmer]

While I respect Peter Hodson and the 5i team they only have a limited understanding of the all the companies they provide comments about. That is a given.  How did Wignall miss EPS estimates when he never provide guidence on EPS? How was fiscal Q3 results just "short of a disasater" when Wignall provided guidence on fiscal 2022 for revenue and Adj EBITDA in October 2021 and he will

[retiredcf]

In reaction to the comments, I looked at this again and I think people are selectively reading what 5i wrote. In my view, this is a generally positive review. The EPS estimates would presumably have come from the institutional firms that cover the company (TD, Acumen, Cormark, BMO and Canaccord). But as they indicate, the timing was unfortunate because in this quarter, they were hit with all of