Kevin, also keep in mind, that Jan Q's $0.16 before deemed div included all that extra NationsBank interest expense. Without that, total interest expense would have been about $2M+/-, putting EPS at $0.20, up big time from consensus, and that's with low gross/operating margins.
April Q should benefit from all the cost-cutting they did in Jan Q, higher enrollment in Chartered and HIP (brought online the final 50,000 HIPsters), and the lower interest expense.
The only question is how will the SEC fine be accounted for, as extraordinary expense, or "other" before taxes. And when will this SEC thing be resolved.
Either way, PPH looks way oversold to me, considering the fundamential outlook hasn't changed, and now it's at a 3-year low, while revenues and operating earnings, at least, are at a 3-year high. Good P/E and P/S ratios too.
I'm buying. |
