Expect a solid Q4 from DIRTT Environmental, says Industrial Alliance

When DIRTT Environmental (DIRTT Environmental Stock Quote, Chart, News: TSX:DRT) reports its Q4, 2015 results after market on Wednesday, Industrial Alliance Securities analyst Neil Lindsell expects a solid quarter will cap a solid year.

Lindsell says that because of the lumpy nature of DIRTT’s business, he likes to focus on trailing-twelve months results instead of a quarter-by-quarter assessment. That said, the analyst expects the company will deliver fourth quarter revenue of $62.2-million, in-line with the consensus of $62.8, and what would be a 7.3 per cent bump over last year’s fourth quarter topline.

Lindsell laid out what he anticipates from Wednesday’s news.

“We expect the quarterly/annual results to further strengthen the fundamentals of DIRTT’s impressive growth and our thesis,” he says. “We will be looking for further guidance on the progress towards a more diversified customer base (including potential awards in the healthcare segment), updates on the ConocoPhillips contract, and other initiatives that would stimulate growth going forward.”

In a research update to clients today, Lindsell maintained his “Strong Buy” rating and one-year target price of $9.00 on DIRTT Environmental, implying a return of 57.1 per cent at the time of publication.