ACL's profit was less than analysts forecast. Not by much. Personnally I was expecting around $200m. Only $179m. The big question is how much profit can they make without covid testing? Looking at analysts' forecasts it looks like $30m according to Goldman Sachs in 2024. So at $5 per share and $1bn market cap it looks expensive. Is covid going away? Probably not, but revenue from covid testing may diminish over time. Most people just can't be bothered if they only have cold symptoms. So don't count on too much testing in future. So maybe earnings will be around $40m next year(2023). That puts it on about 25 PE. Not cheap. I'll be looking to sell my last ACL shares maybe just before the dividend date or hold perhaps till November after which it may have recovered a bit after the fall after paying the dividend. So maybe hold for now and wait and see. Sold mostly above $5. Only have 10% of ACL shares I had originally bought left now. So does not matter too much.
ACL Price at posting:
$4.85 Sentiment: Hold Disclosure: Held
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