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Technology Stocks : Cerprobe (CRPB)

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To: raefon who wrote (145)4/24/1998 2:47:00 AM
From: Herschel Rubin   of 201
 
Final Post tonight: Updated CRPB PE = 16.7

With the Q1 earnings, the PE (trailing 12 months) can be recalculated as follows:

FY97 EPS was $0.96

Q1 1998 EPS was $0.28
Q1 1997 EPS was $0.17 -- Drop off Q1 1997 by adding diff to FY97 EPS
---------------------
Difference ====>$0.11 -- So, EPS is $1.07 for the trailing 12 mos

THEREFORE, the PE a/o today's close = $17.875/$1.07 = 16.7

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

FORWARD EPS ESTIMATE:
---------------------

Q1 1998 EPS = $0.28 (actual)
Q2 1998 EPS = $0.23 (my conservative est, Dow Jones News: $0.27 for Q2
Q3 1998 EPS = $0.32 (assume sequential growth over Q1 1998)
Q4 1998 EPS = $0.36 (assume sequential growth over Q3 1998)
-------------------
1998 EPS est. $1.18

THEREFORE, FORWARD PE est. a/o today's close = $17.875/$1.07 = 15.1
Not bad for a company with a 25% growth rate. Note: This is an estimate.

It is interesting to note that Dow Jones News Service - Professional Investor Report shows the recently updated Q2 1998 consensus estimate for 3 covering analysts as $0.27, which is sequentially lower than the just-reported Q1, but not by much. In the above analysis, a more conservative $0.23 was used.
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