11:50 AM EST, 03/08/2024 (MT Newswires) -- National Bank said Friday that Park Lawn Corp. ( PRRWF ) reported fourth-quarter revenue of $88.1 million, a 2.3% year-over-year increase driven primarily by acquisitions, in line with the NBF estimate of $88.1 million and the Street's $87.9 million.

Adjusted EBITDA for Q4 was $20.6 million, in line with the NBF estimate of $20.5 million forecast and ahead of the consensus estimate of $20 million. Adjusted EPS of $0.25 was ahead of the NBF $0.20 forecast and the Street's $0.21, National Bank noted.

Also, the company has withdrawn its 2026 targets of $150 million in Adjusted EBITDA and $2+ in adjusted EPS.

"We suspected this would occur, as following the divestiture of several legacy assets representing ~$60 million in annual sales at 15-17% margins [....], the pace of M&A required to reach the targets on time was not feasible," the analysts said.

Meanwhile, National Bank said the company introduced guidance for 2024, which is in line with Street estimates.

The company has also moderated its guidance for the pace of M&A. Park Lawn expects to spend $50 million to $100 million

on acquisitions annually instead of the previously expected range of $75 million to $125 million.

National Bank has an outperform rating and a price target of C$22.

"We do not believe investors will view the retraction of 2026 objectives punitively, though some may be disappointed by the slower expected pace of M&A," the analysts said.

The company's stock fell over 4% on last look on Friday.

Price: 18.50, Change: -0.96, Percent Change: -4.93