InfuSystem (INFU 0.00%↑) reported its 4Q23 earnings and hosted a conference call last week. Xcel Brands (XELB 0.00%↑) filed for a secondary offering, which was updated yesterday. IRIDEX (IRIX 0.00%↑) on the other hand, has been silent, which is probably also telling us something. So, let’s hop right into a more detailed look at each name based on this new information.
INFU Numbers & Guidance Strong, But Stock Sputters
What’s not to like about INFU’s numbers and guidance? The company smashed its guidance of 11% revenue growth, hitting 14% YoY growth for FY23. Moreover, EBITDA margins, which have been lower than usual the past couple of years due to heavy investments made into the business, started to expand again. On the guidance front, the company guided to high single digit revenue growth and EBITDA margins above FY23’s final number of 17.8%. During the conference call Q&A, it was apparent that INFU will almost certainly beat and raise guidance during the year. In fact, multiple opportunities exist that could help them blow away the revenue guidance, but management clearly wants to set expectations they know they can meet and are not reliant on events that might not come to fruition until 2025. In other words, there is absolutely no reason to be disappointed with the 4Q23 results nor the guidance. So, why is the stock down following the report; and is this a buying opportunity?