What are analysts saying about SARO's Q4 performance?

**Analysts are largely positive about SARO's Q4 performance**, highlighting the company's strong revenue growth, robust adjusted EBITDA, and optimistic outlook for 2025. Here's a detailed analysis:

1. **Revenue Growth and Outlook**: SARO's revenue for Q4 2024 was $1.41 billion, marking a 21.8% year-over-year increase. The company has issued a strong guidance for 2025, forecasting revenue between $5.8 billion and $5.95 billion, compared to analyst estimates of $5.83 billion. This represents about 12% growth from the 2024 revenue of $5.24 billion, indicating a positive market sentiment.
2. **Adjusted EBITDA and Margin Improvement**: SARO reported an impressive 37.2% increase in adjusted EBITDA for Q4 2024, reaching $186.2 million. The company's adjusted EBITDA margin improved by 150 basis points to 13.2%, reflecting enhanced operational efficiency. Analysts view this as a strong indicator of the company's profitability and cash generation capacity.
3. **Sector-Specific Growth**: The commercial aerospace sector saw a 33% increase in revenue for SARO in Q4 2024, while the business aviation segment grew by 11%. These figures underscore the company's ability to capitalize on the growing demand in its core markets.
4. **Strategic Initiatives**: SARO's recent $1.7 billion IPO has allowed the company to pay down debt significantly, resulting in over $130 million in annual interest savings. This improved balance sheet is expected to support organic growth investments and potential acquisitions, further enhancing the company's expansion prospects.
5. **Analyst Ratings and Price Targets**: JPMorgan maintains an Overweight rating on SARO with a steady price target of $34.00, indicating confidence in the company's future performance. Bernstein also maintains an Outperform rating with a $30.00 price target, acknowledging SARO's strong revenue surpassing expectations and solid adjusted EBITDA.

In conclusion, analysts are optimistic about SARO's Q4 performance, citing strong revenue growth, improved profitability, and a positive outlook for 2025. The company's strategic initiatives and successful capital raise are seen as key drivers for future expansion.