SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SDL, Inc. [Nasdaq: SDLI]
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ben Wa who wrote (1641)6/9/2000 11:46:00 AM
From: Wyätt Gwyön  Read Replies (3) of 3951
 
Actually, I think I get your point about the sweet spot of growth and multiple expansion. My point to you has to do with your statement regarding EPS for 2000 and 2001:

eps of $1.27 & $1.66 respectively. that is eps growth rate of 31% from 2000-2001.

I believe these figures are understated significantly. Specifically, I believe FY2000 earnings are likely to be closer to the figure you quote for 2001 than 2000. FY01 numbers should be much higher. A WAG, based on 20% QoQ growth, is $3.22, or nearly double the number you are quoting.

I may be right or I may be wrong--time will tell--but my point is, the numbers one chooses to work with have an enormous impact on the expected outcome. I look at a company that is growing earnings and revenues at 20%+ sequentially--with a spike in the current quarter leading to revised guidance of 58% for EPS and 44% for revs. This is a company that has a history of beating analyst estimates by good-sized margins (not the Cisco one-penny variety). As long as they can maintain the sequential growth we are seeing, I believe analysts will consistently underestimate future growth and there will always be people using the lowball analyst figures to complain that the stock is too expensive.

After the Q4 earnings come out, we can come back and look at our exchange here and see who was closest to the truth.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News