OM:EVOHospitality
Evolution (OM:EVO) Margin Miss Undercuts Bullish Growth Narrative Despite High Profitability
Evolution (OM:EVO) posted net profit margins of 53.7%, down from last year’s 56.5%, even as earnings grew 10.5% over the past year. Looking ahead, the company’s earnings are forecast to rise 10.8% annually and revenue by 9.4% per year. This continues a standout five-year average earnings growth rate of 26.4%. Investors are likely weighing the mix of strong historic growth and consistently high margins against a modest year-on-year decline in profitability.
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