RE:Earnings Assessmentretiredcf wrote: EPS and revenue missed estimates ($0.64 vs $0.72 and $756.82M vs $871.77M). Management noted that shortly after the pandemic, materials pricing increased drastically as consumers stayed at home and focused on home renovations, however, most recently there has been a substantial decrease in materials near the end of the second quarter and carrying into the third quarter.
Sales did increase by 83.3% partially due to acquisitions and the remainder due to increases in materials pricing. The company increased its equity position but also significantly increased its long-term debt, bringing the debt to equity ratio to ~2.5. That said, despite the earnings misses, the company's financials are in pretty good shape and it continues to grow its top and bottom line.
So said 5iResearch; perhaps last weeks 22% haircut is a bit of an overreaction. GLTA
Long term debt has skyrocketed. Bad news if the economy goes south.