Jamieson Wellness (TSX:JWEL) stock rose 4.59% on November 12. Shares have dropped 19.5% month-over-month and the stock suffered a precipitous drop following the release of it third-quarter results on November 6.
Revenue increased 3.7% year-over-year in Q3 2018 to $83.1 million and adjusted EBITDA climbed 10.7% to $17.9 million. Jamieson posted solid domestic and international sales which were offset by a dip in its specialty brands and health food channel.
It was also struck by a decline in its Strategic Partners revenue due to bad timing of ingredients from a related partner. That volume will be moved to the fourth quarter, according to President and CEO Mark Hornick.
Jamieson narrowed its full-year outlook but is still on track for revenue in the range of $332 million to $337 million. It also projects 6.5% to 8.5% growth in its Jamieson Brands segment with between 29% and 34% growth in its international segment. With a fourth-quarter bounce back in order Jamieson also projects 20% growth in its Strategic Partners segment.
The stock still offers a dividend of $0.09 per share which represents a modest 1.6% yield.
Jamieson is an attractive target following its Q3 2018 earnings release.
The supplements and sports nutrition market has posted very solid growth in domestic and international markets which is forecast to continue into the next decade. An aging population will grow consumer bases at home and worldwide.
Jamieson is in a great position to take advantage of these trends and is a terrific buy-low candidate today.
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