Presidio, Inc. (PSDO) Tops Q4 EPS by 1c, Revenues Miss; Offers FY19 Revenue Mid-Point Outlook Above Consensus

Presidio, Inc. (NASDAQ: PSDO) reported Q4 EPS of $0.33, $0.01 better than the analyst estimate of $0.32. Revenue for the quarter came in at $729.3 million versus the consensus estimate of $756.82 million.

“We are pleased to report record quarterly revenue in our fourth quarter of $766 million representing growth of 5% over the prior year. Our strong revenue performance was driven by customers consuming our high-value add services and establishing multi-year relationships with Presidio, driving a 26% increase in service revenue and strong growth in recurring revenue. We also continue to see strong growth in our backlog, which is up 16% over the prior year,” said Bob Cagnazzi, Chief Executive Officer of Presidio.

Cagnazzi continued, “During our fiscal 2018 year, we endeavored to create shareholder value through investing in our organic solutions set, executing on our tuck-in M&A strategy, deleveraging, and, importantly, taking capital structure actions to further bolster our strong free cash flow profile. During the fiscal year, we generated $123 million of free cash flow. We have always maintained that we will deploy our free cash flow to create value for our shareholders, and today, we are pleased to announce two initiatives to that end. First, we are pleased to announce a quarterly dividend program of $0.04 per share. Second, we have entered into an agreement to repurchase 10,750,000 shares from Apollo. We have tremendous conviction in our business, and this share repurchase enables us to use our strong cash flow to deliver EPS accretion of 7% on an annualized basis to our shareholders while still maintaining ample capacity for future M&A.”

GUIDANCE:

Presidio, Inc. sees FY2019 revenue of $2.85-2.9 billion, versus the consensus of $2.85 billion.

For earnings history and earnings-related data on Presidio, Inc. (PSDO) click here.

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