FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:Beacon Securities Update

[savyinvestor333]

He is saying the same yhing I mentioned earlier yesterday. When you have the 5.8 millio EBITDA loss and state that you will be 3-4% positive EBITDA by year end. They would need to improve the gross margins to historical levels to now achieve this

As it relates to EBITDA, we believe XBC will need to show more significant gross margin improvement in the 2H to offset the increase in SG&A (we increased it by +19%). Based on our revneue forecast, we estimate XBC will need to post a consolidated gross margin of >38% for the remainder for FY21E (vs. 20% in Q1) to achieve the low end of its EBITDA guidance. While XBC did achieve such high mark previously (namely FY17), we believe given the multitude of moving parts and its more-recent track record, the company is more likely to miss the mark this year and we model gross margins just shy of 35% for the remainder of FY21E.

newcoin wrote: I'm very confused by this analyst.

I'm not sure he understands XBC?

Basically, he says XBC will meet their guidance and then he says they won't?

I think I'll listen to a different analyst.

ZouZS3 wrote:

newcoin wrote: Strange, because he still says guidance is achievable:

The company reiterated its guidance for FY21E which called for total revenues of $110-$130 million and EBITDA margin in the range of 3%-4% (implying EBITDA in the range of $3.3-$5.2 million). Given Q1/FY21 performance, we believe the middlerange of XBC’s revenue guidance is achievable based on the following assumptions: 1) Cleantech (ex. HyGear) revenues to pick-up back to $9-$10 million range as Q1/FY21 performance was relatively in-line with our expectations 2) HyGear’s revenue to pickup in 2H/FY21E to reflect CAGR of 10% over FY19 reported figures on run-rate basis (we admit the bar might be set too high here) 3) Cleantech’s segment revenues to achieve ~10% organic growth (+ the inclusion of Nortec mostly in 2H/FY21E), with no meaningful contribution from the potential capacity expansion at Inmatec and no additional M&A.

ZouZS3 wrote:
Woww downgrade hard

 

"While the company did not provide the breakdown of how each business is doing, we suspect the weakness is largely at HyGear given managements indication of record sales and deliveries for Inmatec, which remains operating at full capacity. "Given the multitude of moving parts and its more-recent track record, the company is more likely to miss the mark this year and we model gross margins just shy of 35% for the remainder of FY21E.