NovaCare's annual 10-K is available now on Yahoo!
sec.yahoo.com
A look at the quarterly results pattern generated the following thoughts: During fiscal '96, NOV experienced flat sequential revenue of approximately $200MM/qtr. But in fiscal '97 (year ended 6/97) this pattern changed dramatically, primarily driven by acquisitions. Fiscal '97 revenue by quarter in millions: $209, $235, $290, $332. NovaCare has announced plans to continue their acquisition strategy during fiscal '98, plus '98 revenues will include the full-year impact of previous acquisitions.
EPS also grew sequentially (an average of $.02/qtr) during fiscal '97: $.12, $.15, $.16, $.19 for a total of $.62 for the year. Currently, while 4 of 7 analysts following NOV rate it a *strong buy*, their consensus EPS estimate is only $.75 (+21%) for the year ending 6/98. However, if NOV could continue to increase quarterly earnings by $.02/qtr on increasing revenues, fiscal '98 EPS would be as follows: (9/97) $.21, (12/97) $.23, (3/98) $.25, (6/98) $.27 for a total of $.96 (+55%).
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