Based on projected 4Q sales and earnings, I've noticed something that I don't know if I should be concerned about. Perhaps someone more experienced in fundamental analysis can set me straight here....
Estimated EPS is 0.08. Multiplied by the same 12,454,000 shares that the 3Q97 loss was based on, this comes to $996,320. Estimated revenues are $18M, so only about 5.5% of revenue dollars are actually shown as earnings.
How does this number (5.5%) compare to other companies in the industry, or to other industries? It seems awfully low to me, but that may just be my inexperienced perception. It also makes it seem that for each cent of EPS increase (or $124,500), they'd have to show another $1.8M in sales. Is this correct or am I totally off base here?
Thanks!
Piranha |
