Overview

* K-Bro Q3 revenue grows 49.3% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 missed analyst expectations

* Company completed Stellar Mayan acquisition, expanding UK footprint

Outlook

* K-Bro anticipates 12-18 months for Stellar Mayan integration

* Company expects steady volume trends in healthcare and hospitality

* K-Bro not expecting significant impact from global economic conditions

Result Drivers

* STELLAR MAYAN ACQUISITION - Acquisition contributed to significant revenue growth and expanded UK footprint

* HEALTHCARE AND HOSPITALITY GROWTH - Healthcare revenue increased by 66.8% and hospitality by 33.6%

* MARGIN IMPACT - Adjusted EBITDA margin decreased due to Stellar Mayan cost profile

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$155.90 C$152.60

Revenue mln mln (5

Analysts

)

Q3 Miss C$0.31 C$0.81

Adjusted (4

EPS Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for K-Bro Linen Inc ( KBRLF ) is C$49.50, about 26.2% above its November 11 closing price of C$36.55

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)