Earlier today, Richelieu Hardware (TSE:RCH) (OTC:RHUHF) reported its Q1-2023 financial results, which beat both earnings per share (EPS) and revenue forecasts. Richelieu is a Canadian company that imports, manufactures, and distributes specialty hardware and complementary products. RCH stock was down over 2% at one point today after the report came out, but it ended up finishing 1.2% higher.
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The company’s Q1-2023 sales increased by 4.8% year-over-year, reaching C$403 million (expectations were C$388.14 million). 1.8% of its sales growth was organic, while the rest came from acquisitions.
Meanwhile, diluted EPS came in at C$0.40, down 24.5% year-over-year, beating the C$0.39 consensus estimate. In addition, EBITDA reached C$49.1 million, representing a decline of 8.6% and an EBITDA margin of 12.2% (180 basis points lower year-over-year).
Next, adjusted cash flow from operations, which doesn’t include net changes in non-cash working capital balances, decreased by 9.3%, reaching C$0.68 per share or C$38.3 million. RCH completed four acquisitions in Canada during the quarter and one U.S. acquisition after the quarter ended. Nonetheless, U.S. revenue grew by 4.7% compared to Canadian revenue growth of 0.7%.
Is Richelieu Hardware Stock a Buy, According to Analysts?
According to analysts, Richelieu Hardware stock comes in as a Moderate Buy. The average RCH stock price target of C$50 implies 34.4% upside potential.
