PSFT - 1997 Outlook [closed thread] Message Board

STOCKTALK

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 : PSFT - 1997 Outlook [closed thread]

PSFT 0.0001000

0.0%

Oct 29 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bilow who wrote (519)	11/11/1997 1:19:00 AM
From: Chuzzlewit	Read Replies (1) of 940

Carl, there are a number of inaccurate statements in your post. Let me correct a few of them. Earnings for this year are expected to be $1.73 according to Lehman Bros. That computes to a P/E of about 40x. Projected 1998 earnings are $2.45, so the forward-looking P/E is about 26x. Second, operating earnings were about 19% of sales in 1997. I never pay attention to either book value or PSR's. In their press release PSFT indicated that they were comfortable with 75% growth for the remainder of the year (read that as 75% minimum because they always seem to surprise). Also, for this company you need to pay special attention to deferred revenues (listed as a current liability on the B/S) -- this item is a peek into future revenues, and it stands 50% higher than it did nine months ago, and almost 22% higher than it did 3 months ago. This is evidence that sales may be accelerating. Here are the deferred revenue numbers: 4q 96 $183,252 1q 97 204,893 2q 97 231,189 3q 97 283,816 Based on these numbers I would guess that PSFT will be looking at a minimum of about 55% revenue growth next year (but it could be a lot higher). Regards, Paul

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next