Opinions
Peter Hodson
Flyht Aerospace Solutions
FLY-X
COMMENT
Jan 18, 2017
Stock price when the opinion was issued
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A frustrating stock. Here it's a buy. Super-promising business. Provide streaming of data to the ground, which saves customers money. Major developments in last 6 months that are pushing the company forward. Westjet became their first tier-one customer, so this is the crack in the door.
Profit of 1c per share beat estimates of -1c.
Revenue of $7.2M beat estimates by 11.4%. EBITDA was positive $1.17M vs an expected loss of $305,000. Sales rose 186% so certainly a nice improvement. Margin was 67% up from 49.5%.
Profit was the highest in three years as the airline sector recovered from covid.
All four categories grew in the quarter.
Considering some macro and cost pressures, this was a good quarter.
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Sells to aircraft manufacturers to track planes and utilize information in a more productive way. Had a big run up when the 370 went missing in the Indian Ocean 3 years ago. The stock went way up and then came down because this is a long-term story. It has had a huge run recently. Came out with a couple of positive announcements on contracts and information, and it has kind of sparked a fire. However it is probably too early. This is a long sales process. He wouldn’t recommend this as he is more conservative, but it certainly has some good qualities.