Image source: Altus Group
Altus Group (Toronto-AIF) announced Thursday that CEO Mike Gordon will be retiring as of March 31, 2021, to be succeeded by current President of Altus Analytics, Jim Hannon.
Gordon, who has only occupied the big chair since September 30, 2020, had a successful run in his brief stint as CEO. The Toronto-based provider of software, data solutions and independent advisory services to the global commercial real estate industry reported solid preliminary fourth quarter numbers on Thursday, slightly ahead of estimates, concurrent with the management succession announcement.
Hannon, with Altus since December 2020, is credited with driving Altus Analytics to a record 85% growth in bookings and 30% growth in revenue in 2021. He has over 30 years of global operating experience that includes senior management positions at Callcredit Information Group, FICO and Avaya.
“I am excited and honoured to take on the CEO role, and I am confident that this will be a seamless transition," said Hannon.
"Altus is exceptionally positioned for growth. We will continue executing our declared strategy and remain focused on operational excellence with the best talent in our industry."
Preliminary Fourth Quarter and Full Year 2021 Earnings
Altus reported preliminary adjusted earnings of C$0.42 per share on revenue of C$162.9 million in the fourth quarter. Analysts were looking for C$0.35 and C$161.8 million, respectively.
For the full year, the company reported preliminary adjusted earnings of C$1.90 per share on revenue of C$625.4 million.
Stock selloff feels overdone
- Altus Group's stock had a strong run for most of 2021, posting a 47% gain for the year through the first week of December. Since then, however, the stock has shed 21% of its value.
- Meanwhile, the S&P / Toronto Stock Exchange composite index has slipped less than 1% in that time frame.
- We don't see the CEO change as a major stumbling block given that Gordon was only leading the company for just over a year.
- Hannon's leadership of Altus Analytics resulted in 41% revenue growth for the division in Q4 that is now over 44% of total revenue.
- That 20% delta between Altus stock and the TSE composite feels like an oversold situation, including Thursday's 4.9% slide.
Source: Equities News