Oct. 15 at 8:11 PM
$ODC jumped 10% even though it missed both revenue and EPS estimates.
The reason is simple: the market’s starting to see what management’s been doing behind the scenes.
Gross margins hit their highest level in over a decade thanks to a better product mix and strong pricing. Operating income more than doubled year-over-year, and the company continues to push into higher-margin categories like animal health and sports field products. Pet care also held up well, despite softer volumes.
Cash flow remains solid, and the balance sheet is clean. Management’s strategy to focus on pricing discipline and branded products is working, and it’s finally showing up in the numbers.
Short term, earnings volatility might persist, but structurally, ODC is in a stronger position than a year ago. The market is slowly catching up to that reality.
For the full breakdown, read my Oct 8 note:(https://www.beatingthetide.com/i/175806120/why-oil-dri-odc-jumped-after-a-slight-earnings-miss).
