Earlier today, Richelieu Hardware (TSE:RCH) (OTC:RHUHF) reported its Q2-2023 financial results, meeting earnings-per-share (EPS) estimates and beating revenue projections. Nonetheless, the stock finished lower on the day.
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In Q2-2023, Richelieu reported sales of C$472.1 million, surpassing the projected C$467.8 million but falling from last year’s figure of C$487.9 million. The company’s Canadian revenue was C$279.5 million, while the U.S revenue stood at US$141.9 million. These figures fell year-over-year despite the company’s six acquisitions completed this year, two of which were undertaken in the second quarter in the U.S.
On the earnings front, diluted EPS clocked in at C$0.55, aligning perfectly with the consensus estimate. However, this figure fell by 33.7% year-over-year. Simultaneously, EBITDA reached C$61.5 million (down 21% year-over-year), signifying a 13.0% EBITDA margin. Additionally, adjusted cash flow from operations, excluding net changes in non-cash working capital balances, saw a decline of 20.4% to reach C$0.86 per share or C$48.4 million.
Despite the company’s year-over-year declines, its average return on equity still came in at a respectable 18.2% for the quarter.
Is Richelieu Hardware Stock a Buy, According to Analysts?
Based on just one Hold rating assigned by five-star-rated CIBC analyst Hamir Patel, Richelieu Hardware stock comes in as a Hold on TipRanks. Further, RCH stock’s price target of C$44 implies 8.5% upside potential from here.
