Jamieson Wellness: Should You Buy After Earnings?

Jamieson Wellness (TSX:JWEL) is a Toronto-based company that is engaged in the business of manufacturing, distributing, and marketing natural health products. Shares of Jamieson have dropped 10.2% in 2019 as of close on May 16. The stock has climbed 5.3% month-over-month. Jamieson has been bolstered by the release of its first-quarter 2019 results.

The company release its Q1 2019 earnings on May 8. Revenue rose 8.7% year-over-year to $72.6 million and adjusted EBITDA climbed 14.1% to $14.5 million. Adjusted net income increased 12.3% to $6.5 million. Jamieson continued its strong international sales trend in China and Eastern Europe, posting 30% growth in the quarter. Its drive into China is an important part of its growth strategy going forward.

Cash generated from operating activities was $2.3 million higher than the prior year on the back of improved earnings. Jamieson announced a quarterly dividend of $0.09 per share which represents a modest 1.8% yield. However, the extra income is a solid boon as investors will be looking for more capital growth from Jamieson.

Jamieson reiterated the outlook it gave back in February 27, 2019. It expects revenue growth in the range of 5% to 9% and adjusted EBITDA in the range of $76 million to $79 million. Jamieson stock has slipped far from its all-time highs back in the fall of 2018, but its long-term growth trajectory still makes it an attractive addition. Its P/E of 27 is better-than-average relative to its industry.