Taking the Schneider statements at face value, I'm interpreting mid-to-high single digit rev. growth, increasing 'closer to 10 percent in the second half of 1998,' as 5%>6.5%>8%>10% for the next four quarters.
Which translates into quarterly revenues of $283.5>$302>$326>$358. Using the operating margins set forth by Merrill Lynch provided by Maverick (http://www.techstocks.com/~wsapi/investor/s-16625/reply-478) I'm getting earnings of .22>.24>.26>.29 (rounding off), or forward EPS of $1.01, P/E of 26, overall growth of 32%.
This would tend to conflict with Ashby's statement projecting estimates of $1.15 to $1.20 a share in FY98, except my calculation wouldn't include 4Q98, and is pegged to a conservative interpretation of the phrase 'mid-to-high single digits.'
The Fool Ratio, for those who use it, would be .8125, not a terribly strong buy signal. Full and fair value would be $32.
Anybody else getting different numbers?
>>ALAMEDA, Calif., Nov 5 (Reuters) - Ascend Communications Inc's
(ASND.O) treasurer said Wednesday sales will increase between five
and 10 percent each quarter sequentially for the next two quarters.
Sequential revenue growth will increase closer to 10 percent in the
second half of 1998, said Bernie Schneider, Ascend treasurer and
corporate vice president.
"We see revenue increasing in the mid- to high single-digit range for
the next couple of quarters," he said. << |
