Hweb, I added to HHS today. It looks like the estimates for FY24 have dropped to 0.50-0.51 vs the previous estimate of 0.71, so that might be behind the drop since earnings. Looks oversold on a technical basis and is approaching some possible support at its 200 DMA around 6.65. Looks like the first half of this year will be a little underwhelming for GAAP eps, but they are setting up nicely for some big quarterly numbers in Q3 and Q4. Could be a nice turnaround story:
"there's palpable sales momentum evident here. And we all inside the company are aware of it. It's an exciting time. But you do have a sales cycle to work through and an onboarding process to work through when you land new business. So it does take a little time, but it's all about pipeline and conversion. And we're very happy with our progress there. But we also are focused on being more profitable, and that's the $16 million approximate cost savings we've identified." -from Q4 2023 CC transcript
If the company is being judged on its GAAP numbers, they clearly won't be great in Q1 and Q2. But, looking at EV / EBITDA is pretty interesting. I note their TTM Adj. EBITDA for FY23 at 16.5MM, so with the stock at 6.90/sh, that means its trading at 2x Ev /EBITDA ratio which is dirt cheap. And, they are expecting higher adj profits in FY24 from 6MM in projected cost savings. Just have to grind through the next 4-6 mos before having the chance to show some better numbers. Good one to quietly accumulate.
