02:52 PM EDT, 03/11/2024 (MT Newswires) -- Doman Building Materials' ( CWXZF ) Q4/23 revenues were $527.4 million, down 7.9% y/y, and below National Bank's $545.1 million estimate (Street: $551.5 million). EBITDA clocked in at $33.2 million on 6.3% margins (up 60 bps y/y), above NBF's $31.3 million forecast (5.7% margins), but below the Street's $36.6 million forecast (6.6% margins). EPS was robust with a print of $0.12, above NBF $0.04 forecast and the Street's $0.09.

"Management highlights the mild winter as a positive for the company, with volumes surprisingly strong in the U.S. as we turn our attention to 2024e. Weakness in Canada may be partially offset as customers opt for less-than-truckload shipments at better margins for DBM," writes analyst Zachary Evershed.

On higher estimates, target rises to $10 (was $8.50) on an unchanged 12.5x 2025e EPS, equivalent to an 8.1% FCF yield. Maintain Outperform.

Price: 8.09, Change: +0.24, Percent Change: +3.06