TSX:SXP - Post Discussion
Post by
retiredcf on Aug 21, 2023 6:31am
Another View of Earnings
EPS of 9c missed estimates of 21c; revenue of $71.6M was 9% below estimates. EBITDA of $9.5M was 33% short. Sales rose 15% but profit dropped 71%. The acquisition of Royal Envelope boosted sales, but rising inventories, lower demand and inflationary pressures hurt results. Customers are making inventory adjustments in anticpation of possible weakening demand. Cormark downgraded its rating. SXP is very cheap, and the drop reflects the situation. There is small cap and debt risk here, but it is priced well enough to be a higher-risk hold, in our view. (5iResearch)
Be the first to comment on this post