ERFSF - Sequoia Fund - Eurofins Scientific: No Longer The Scrappy Start-Up It Once Was
2024-03-23 06:15:00 ET
Summary
- Eurofins was among Sequoia's worst performing stocks in 2023, for the second year in a row.
- Eurofins to resume its winning ways in 2024, a year for which consensus estimates project the resumption of 17% earnings growth.
- ERFSF is no longer the scrappy start-up it once was, and it is inevitable that the growth Eurofins enjoys over the next ten years will be lower than that of the last ten.
The following segment was excerpted from this fund letter.
Eurofins Scientific ( OTCPK:ERFSF )
Eurofins was among Sequoia's worst performing stocks in 2023, for the second year in a row. The source of the underperformance was primarily the roll-off of very significant COVID revenue, revenue which Eurofins captured over the 2020-2022 period by being very fleet of foot serving customers during the pandemic. At its peak, COVID testing accounted for almost half of Eurofins' Operating Income and drove spectacular returns in the stock, to our benefit....
Sequoia Fund - Eurofins Scientific: No Longer The Scrappy Start-Up It Once Was