- Company reports another disappointing set of quarterly results as both sales and profitability missed expectations. Unfavorable product mix resulted in gross margins taking a major hit.
- Management provided forward sales guidance well above current analyst expectations and projected adjusted EBITDA to finally turn positive.
- Recent acquisition of substantially larger UK-based Sahara Presentation Systems has the potential to transform the previously ailing company into a profitable, cash-generating enterprise.
- Execution risks mitigated with Sahara management remaining in place.
- Investors should use any earnings-related weakness to accumulate shares in preparation for a much stronger finish to FY2020 and vastly improved results next year. Reiterating my short-term price target of $2.50.
For further details see:
Boxlight Corporation: Buy On Any Earnings-Related Weakness In Preparation For A Much Stronger Close To The Year