shlomi and all: Since there was some confusion about last
quarters' earnings estimates and the tax rate, I just
thought I'd clarify the situation in advance of the announcement
on the 16th.
Analyst estimates are based on fully taxed results, even though
HLIT is not yet fully taxed. Therefore, the $0.15 estimate for
this quarter (fully taxed at 35%) is equal to $0.20 at HLIT's
current tax rate of 15%. Therefore, HLIT has to report $0.20
just to meet the analysts' estimates of $0.15. Anything less
than $0.20 will be a negative surprise, anything more a pleasant
surprise for those who are long HLIT.
Calculated as follows:
1. $0.15 * 11.6 million outstanding shares = $1,740,000 million
net profit (fully taxed @ 35%)
2. $1,740,000/0.65 = $2,676,900 net profit (before taxes)
3. $2,676,900 * 0.85 = $2,275,400 net profit (taxed @ 15%)
4. $2,275,400/11.6 million outstanding shares = $0.196
Everyone agree? |
