ZIP couldn’t even hit $40 million EBTDA in its busiest quarter, yet now they’re guiding for that amount per quarter in the second half, without the seasonal tailwind. That’s a stretch. If they struggled when volumes were at their peak, how are they suddenly going to maintain that level in a softer spending environment?This looks like a setup for disappointment. The market already punished them last time for missing expectations, and it’ll be even harsher if they fall short on a full-year target. If they can’t deliver, the stock will get crushed.
ZIP Price at posting:
$2.71 Sentiment: Sell Disclosure: Not Held
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