- Operating income was up 14% Y/Y and EPS grew 23%. Adjusted operating income and adjusted EPS improved 7% Y/Y, meeting consensus. Revenue was flat Y/Y, missing consensus.
- The thesis has worked well. Waiting for the 10% dip paid off, and the stock returned ~40% in a year afterwards on improved margin focus and successful restructuring.
- I reiterate my long thesis and set a target price of $50, offering a ~7% upside within 12 months. I advise full downside protection 10% below the purchase price.