From Seekingalpha · · 50s
Cardinal Infrastructure Shares Plunge After Profit Warning
Cardinal Infrastructure shares drop after third-quarter profit warning and margin collapse.
In brief
Cardinal Infrastructure shares drop after third-quarter profit warning and margin collapse. Cardinal Infrastructure shares near $5.50 face potential recovery if EBITDA margins return to 10%. Originally reported by Seekingalpha.
Cardinal Infrastructure Shares Plunge
Cardinal Infrastructure shares near $5.50 face potential recovery if EBITDA margins return to 10%.
Third-Quarter EBITDA Margin Collapse
Cardinal's third-quarter EBITDA margin collapsed to 4.2%; guidance was withdrawn, though fourth-quarter EBITDA is expected to improve sequentially.
Dilutive Deal Postponed
Postponing the dilutive $357 million Hughes Brothers deal is a major win; execution and margin recovery must take priority over acquisitions.
Potential Share Price Recovery
A return to 10% EBITDA margins could support shares in the teens or twenties; a $50 million buyback adds potential if operations stabilize.
Here's the gist
Cardinal Infrastructure shares near $5.50 face potential recovery if EBITDA margins return to 10%.
