$0.27 estimate assumed 40% tax rate, but even at 40%, Visx would have blown away estimates with $0.45 fully-taxed. And vast majority of revs go straight to Visx, not PPP.
Going forward, equipment sales fluctuations will have virtually no effect on earnings, as pure-profit procedure revenue growth makes up the difference. And Visx laser users are kicking ass--look at LVCI, doing 3000 procedures a month on 23 lasers--that's 1500 annualized per laser. LZRCF and LCAV are also doing well with mostly Visx lasers.
This means 1998 EPS of AT LEAST $2.00 fully-taxed, $2.50+ at current tax rate, with upside from S2 Smoothscan sales. Dissolution of PPP will ADD to earnings even more.
I see $70 by year end, $40-50 by summer. Oh BABY. |
