TSX:CTS - Post Discussion
Post by
retiredcf on Jan 30, 2024 9:51am
Market Movers
On The Rise Converge Technology Solutions Corp. jumped with the announcement of better-than-expected cash flow from operations and net debt guidance for the fourth-quarter of fiscal 2023.
The Gatineau-based IT & Cloud Solutions provider expects cash flow from operations of $109-116-million for the fourth quarter and $224-231-million for full year 2023, exceeding the Street’s expectations of $23.9-million and $123.1-million, respectively. It projects a net debt reduction of $52-million year-over-year to $209.8-million in 2023.
“These results support the prospects of ongoing gains rather than the potential that the Q323 outperformance wasn’t just a one-time catchup,” said Echelon Partners analyst Rob Goff.
“We returned CTS to our Top Picks Portfolio in Q124 where the Q323 Free Cash Flow and demand (revenues and bookings) outperformance supported prospects of 2024 financial outperformance and a positive revaluation. The rapidly increasing financial flexibility is expected to improve investor confidence while supporting considerations of a more aggressive share repurchase profile and/or a return to inorganic growth in FH224.”
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