Ok, I've read APC's pronouncements on the company's ability to realize a 20%-to-25% growth for the year (as the powers-that-be had originally stated in the report for q4 1996 and reiterated following q1 1997).
I'm confused. It appears that APC is stating that 20%-to-25% is realistic and that maintaining 18.5% profit on sales is also to be expected. Simple math shows this:
1. If APC maintains 18.5% profit on sales, without any growth in sales for Q3, then the net profit for Q3 should come in at 35.85 million, or just under 8 million more than last year (7.95 million).
2. If APC maintains 18.5% profit on sales, without any growth in sales for q4, then the net profit for Q4 should come in at at 38.87 million, or just over 8.6 million more than last year (8.65 million).
So, without any growth in sales for the last two quarters of this year, by just maintaining 18.5% on sales, APC should blow away the 20%-to-25% growth prediction on profitability, coming in at 122.32 million vs 92.4 million for 1996 (a 32.38% increase).
I would have to say that APC didn't exactly go out on the limb too far by declaring the company is probably going to make its 20%-to-25% growth prediction.
Like I said, I'm confused. |
