[ Corrections and Earnings Targets ]
"...I'm wondering though: if the ratio relationship of Gross Margins (71%), SG&A expenses (51%), R&D (13%), Amortization (2.6%), Interest Income (~0.3%), and US/Canadian exchange rates ($0.71 US per Canadian) continues on for the next quarter, then based on that projected CN$11.6 million revenue, we would get an expected EBIT of 4.7%, which would translate to CN$0.08 per share, or US$0.05..."
That should not be EBIT. The calculations already take into consideration Amortization and Interest income, and assumes no tax expense, so instead, it should state Profit Margin (which is equal to Net Income divided by Sales).
In Canadian dollars, the company's profit margins this year have evolved as follows:
Q1: 0.4%
Q2: 3.3%
Q3: 5.3%
(Keep it up...)
Also, today's trading might have taken into consideration the rather large difference between analyst earnings projections of US$0.09 versus my calculations of only US$0.05. Taking the upside considerations that management possibly hinted at, I would be hard-pressed to give any estimates above US$0.07 per share for the fourth quarter.
Regards,
Rainier |
