Post by
retiredcf on May 12, 2023 1:11pm
Another View of Earnings
Today is just the usual market games. And this is why WELL is one of their top 5 recommended smallcaps. GLTA
EPS of $0.06 beat estimates of $0.057 and revenues of $169.69M beat estimates of $159.785M. Revenues grew by 34% for the quarter, driven by accelerating organic growth of 21%. Its Adjusted EBITDA increased by 14% and management raised FY2023 revenue guidance to be between $690M to $710M, and reaffirmed its Adjusted EBITDA guidance of 10% growth. The company has significantly reduced its leverage to a net debt to EBITDA of 2.6X from the prior year's 3.5X. Its adjusted gross margins fell from 54.8% in the prior year to 50.9%, but overall we feel that these were strong results and the revenue guidance raise is certainly a positive.
And as for the today's decline in SP ......
WELL is up 85% this year. We think focusing on a wider view will be helpful. Stocks rarely do exactly what is expected at the same time of expectations. (5iResearch)