Canada's Kits Eyecare prelim Q1 sales rise on glasses unit strength

Overview

• Canada eyecare provider's preliminary Q1 revenue grew 23% yr/yr but missed analyst expectations

• Adjusted EBITDA for preliminary Q1 exceeded 6% of revenue

• Preliminary glasses revenue expanded 61% yr/yr to C$10.8 mln

Outlook

• Company did not provide specific guidance for upcoming quarters or the full year in its press release

Result Drivers

• GLASSES SEGMENT - Glasses revenue grew 61% yr/yr to C$10.8 mln, contributing to overall revenue growth

• MARGIN IMPROVEMENT - Adjusted EBITDA exceeded 6% of revenue, up quarter-over-quarter

Company press release: ID:nCNWT29qda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Kits Eyecare Ltd is C$25.00, about 60.8% above its April 6 closing price of C$15.55

• The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 64 three months ago

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