Overview

* Mullen Group ( MLLGF ) Q3 revenue up 5.6% yr/yr but missed analyst expectations

* Adjusted EPS for Q3 beats analyst estimates

* Net income for Q3 decreased by 13.3% due to higher finance costs

Outlook

* Company continues to rely on acquisitions for growth due to economic conditions

* Mullen Group ( MLLGF ) sees opportunities in expanding service offerings through acquisitions

* Company anticipates nation-building projects could boost economic activity

Result Drivers

* ACQUISITIONS DRIVE REVENUE - Mullen Group ( MLLGF ) attributes Q3 revenue growth to acquisitions, particularly Cole Group and PNW Group

* WEAK PRIVATE INVESTMENT - Revenue from existing business units declined due to weak private capital investment in Canada

* SEGMENT PERFORMANCE - Logistics & Warehousing segment grew due to acquisitions, while Specialized & Industrial Services declined due to fewer capital projects

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$561.80 C$615.70

Revenue mln mln (5

Analysts

)

Q3 Beat C$0.38 C$0.37

Adjusted (6

EPS Analysts

)

Q3 EPS C$0.36

Q3 Miss C$33 mln C$33.70

Adjusted mln (4

Net Analysts

Income )

Q3 Net C$33.20

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the ground freight & logistics peer group is "buy"

* Wall Street's median 12-month price target for Mullen Group Ltd ( MLLGF ) is C$16.13, about 10.6% above its October 21 closing price of C$14.42

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 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.)