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Technology Stocks : Creative Labs (CREAF)
CREAF 0.411+11.2%Dec 8 12:12 PM EST

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To: Justin Pressley who wrote (13473)2/1/1999 7:38:00 PM
From: Gopher Broke  Read Replies (1) of 13925
 
Flat revenues for next quarter is good isn't it?

The main thing that I don't understand about this latest selloff is that it seems to be related to CREAF's guidance for the next quarter, which was that quarter on quarter revenues would be flat. And I believe the most pessimistic of the analysts says that revenues might be down 15%.

But revenues for the next quarter were expected to be down - they were down 39% a year ago, from 0.79 to 0.48.

I calculate that down 15% on 0.64 is 0.54 which would be 0.03 over the last Zack's estimate (made pre-earnings). And that is without the buyback effect which would push the EPS up to about 0.56.

Alternatively, a flat revenue plus buyback effect would put earnings to about 0.67, a clear 0.13 over Zack's estimate for the quarter.

So this kind of outlook should already have been built into the share price? (I sure thought it was!) Can someone please tell me what I am misunderstanding here.
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