Pulse Seismic – Fiscal year update

TSE:PSD released their fourth quarter and fiscal year earning update.  We get a first glance at their acquisition of Divestco.  The database growth was almost doubling with this acquisition.  Revenu potential is major since data duplicates are almost inexistant.  To reduce overhead cost, Pulse is currently merging Divestco database into their own database.  Anyhow, PSD got record earnings for the forth quarter.  Sales increase of over 60%!

Almost all of these sales increase went directly to the EBITDA for an additionnal profit of 5.5M or 0.06$ per share.  In our previous post on PSD, we planned on additionnal revenue from Divestco acquisition of 0.38 per year.  Current EBITDA raise points to around 0.24$ sales increase.  We will get a better view after database merger but we must revisit our estimates down from planned EBITDA of 0.70$ per share to 0.56$ until we get a better view.

Target price at P/FCF of 10 is now 5.60$ per share and increase of 122% at current market price of 2.22.

Disclosure: Author has a position in TSE:PSD.

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Posted in PSD, TSE
One comment on “Pulse Seismic – Fiscal year update
  1. […] Seismic was previously discussed on this site with our original thesis and previous fiscal year update.  After almost a year in PSD, let’s resume the progress in earnings and revise our […]

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