2024-02-16 00:27:37
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What to do with titles from Alithya, Mdf Commerce and BlackBerry? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Alithya (ALYA, $1.76): positive results
Alithya released its financial results for the third quarter of fiscal year 2024 and exceeded some of the expectations of Jim Byrne, analyst for Acumen.
The company reported revenue for its third quarter fiscal year 2024 of $120.5 million versus its estimate of $121.6 million and analyst consensus of $120.6 million. .
Earnings before tax, interest and depreciation (EBITDA) were $9.5 million, compared to $8.7 million according to Jim Byrne and $8.2 million according to consensus.
EBITDA margins were 7.8%, up slightly from 7.7% in the same quarter last year.
The company reported that new orders during the quarter were approximately $125.6 million resulting in a book-to-bill ratio of 1.04 for the quarter.
Gross profit margins were 31.3% compared to Acumen analyst’s estimate of 29.8% and last year’s 30.0%.
Alithya’s trimeter revenues were approximately 7.9%, $10.3M lower than the same period last year and Canadian revenues decreased by $9.5M primarily due to a reduction in services in the banking sector.
United States revenues decreased by 0.6% due to weakness in the IT services sector and exchange rates increased revenues by approximately $0.1 million.
Jim Byrne notes that “EBITDA margins were higher than our estimates due to higher gross margins, which reached a record level and net income as well as earnings per share were higher than our estimates, mainly due to ‘a lower depreciation charge than expected.’
The analyst considers the quarter’s results positive, as the company’s gross margins improved significantly in the face of difficulties in the banking sector which impacted revenue growth.
The company’s cash flow also improved during the quarter and net debt decreased compared to the previous quarter.
The analyst maintains his buy recommendation and his target price of $2.75.
Matthew Hains
mdf commerce (MDF: $3.66): the markets remain hungry
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