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On Friday, Research Solutions Inc. (NASDAQ:RSSS) stock maintained its Buy rating with a consistent price target of $4.35, as confirmed by Roth/MKM. The company reported a robust performance for the fourth quarter of fiscal year 2024, with record revenues of $12.1 million, marking a 22% increase year-over-year. This figure surpassed both the analyst's projection of $11.5 million and the previous quarter's record, despite the fourth quarter typically experiencing a seasonal dip in performance.
The company's Adjusted EBITDA reached a record $1.4 million, which was notably twice the anticipated $0.7 million estimate. This significant growth, amounting to a 70% year-over-year increase, was attributed to the benefits of scale and cost leverage brought about by recent acquisitions. The financial results indicated a strong close to the fiscal year for Research Solutions.
Despite the fourth quarter's better-than-expected results, the forecasts for fiscal year 2025's revenue and earnings have been left largely unchanged. The firm's stance remains cautiously conservative, suggesting confidence in the company's stability and future performance without adjusting expectations based on the recent positive results.
The analyst from Roth/MKM highlighted the acquisition-enhanced scale and cost leverage as key factors contributing to the company's impressive Adjusted EBITDA. The statement provided by the firm underscored the strategic benefits that have led to the company's current financial standing.
In summary, Research Solutions Inc. has retained its Buy rating with a price target of $4.35, as the company's fourth-quarter financials demonstrated solid growth and profitability. The analyst's outlook remains cautiously optimistic, with forecasts for the forthcoming fiscal year staying steady in the face of the recent positive financial outcomes.
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