On Monday, Stifel financial firm adjusted its outlook on Cadre Holdings Inc. (NYSE: CDRE), a company specializing in safety and survivability equipment for first responders and the military. The price target for Cadre Holdings was raised to $35.00 from the previous $34.00, while maintaining a Hold rating on the stock.
The revision follows Cadre's reported adjusted EBITDA of $28.3 million, surpassing both Stifel's own estimate of $27.3 million and the consensus of $25.9 million. The company's sales also exceeded expectations, coming in at $144.3 million against an estimated $142.8 million.
Cadre Holdings has updated its guidance for 2024 to reflect a broader adjusted EBITDA range of $103-109 million, compared to the prior forecast of $104-108 million. This change is attributed to the impact of a recent cyber incident that has constrained total production in recent weeks, potentially limiting EBITDA upside following a robust second quarter.
Despite this, the management has improved their sales outlook to a range of $571-582 million, up from $553-572 million, which suggests that Cadre is effectively compensating for the lost sales and is on track to achieve approximately 7% or more in organic growth for 2024.
The company's performance has been positively influenced by recent mergers and acquisitions, as well as some improvement in its organic growth profile. Stifel had anticipated an increase in EBITDA guidance after a strong first-quarter performance, which makes the latest update a mix of positives and negatives. The unchanged midpoint of EBITDA guidance indicates a level of stability amidst the challenges faced by the company.
In other recent news, the company's CEO, Warren Kanders, reaffirmed the 2024 guidance for net sales and adjusted EBITDA, with expected growth rates of 16.6% and 23.5%, respectively. Despite certain expenses impacting earnings per share, Cadre generated strong free cash flow and remains committed to returning capital to shareholders.
InvestingPro Insights
As Cadre Holdings Inc. (NYSE: CDRE) navigates through its recent cyber incident and updates its financial guidance for 2024, insights from InvestingPro provide a deeper look into the company's valuation and performance. Cadre Holdings is currently trading at a high earnings multiple, with an adjusted P/E ratio of 29.03, which reflects a premium valuation relative to its near-term earnings growth. Despite this, the company's liquid assets surpass its short-term obligations, indicating a solid liquidity position.
InvestingPro data highlights the company's robust revenue growth, with a 13.64% increase over the last twelve months as of Q2 2024 and a significant quarterly revenue growth of 19.18% in Q2 2024. The gross profit margin stands strong at 41.73%, supporting the company's financial health. Additionally, Cadre Holdings has demonstrated a strong return on assets of 7.87%, which is a testament to its efficient use of resources.
Investors should note that analysts predict Cadre Holdings will be profitable this year, as evidenced by its profitability over the last twelve months. The company's stock has also provided a strong return over the last five years. For those interested in further analysis, there are a total of 9 additional InvestingPro Tips available, which can offer more nuanced perspectives on Cadre Holdings' financial outlook. To explore these tips, visit https://www.investing.com/pro/CDRE.
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