Greenspace Brands Inc V.JTR.H

Earnings Out Feb 13 – My Q3 Preview…

[93Darkhorse93]

You got one week left to get in before what I believe will be very strong earnings. Here is what I expect;
 
Revenue: 10.5-11.0M which would be growth of 260% YoY at the midpoint.  (Driven by continued strong organic growth and rollout of grocery rollout with Central Roast that was pushed out into this Q3)

Margins: 24-26% range, the stable margins on top of strong top line growth will help generate strong operating leverage. EBITDA margins have upside potential for Fiscal ’18 as the Nothing but Nature Brands have a high margin profile to them.

EBITDA: A Third Consecutive Q of Positive EBITDA!!!  You will get massive expansion in EBITDA from here on as every incremental dollar will be dropped right down into EBITDA growth.

Net Income: Don’t look for EPS positive, they are growing so quickly they have to be investing in the business.

OutLook: Will have to listen for how the rollout with Starbucks has been going as this is such a huge opportunity for them. Any other commentary on glide path for additional acquisitions and how current Nothing but Nature integration is going.

Analysts: They have been creeping up their estimates but I still think they are behind the glide path of the business.  I am closer to 45M(est. 42.6M) for FY17 and 75M(est. 61.7M)  for FY18. As analysts play catch up and raise estimates the share price should follow higher.
 
Looking for 2.00/share by late summer after Q1 is announced and people start seeing the underlying growth of the business.  Significant upside potential to price targets as additional acquisitions are pursued.
 
LONG