Sales and Earnings Estimates
Mason,
Your $0.11-$0.12 eps estimate can't be to far off the mark. The only unknown variable is the Gamma acquisition and its effects on earnings or net income.
IMHO - Immucor will report increased revenue, sales and earnings for the 2nd quarter ending November 30th. There is a small possibility that acquisition charges or write-offs, if any, associated with Gamma Biologicals may negate the increase during the 2nd quarter. I believe that the 3rd quarter will show a dramatic increase in all categories.
Overall - My previous analysis and stock target price projection remains the same.
The razor and blades business plan being implemented by Immucor may produce an eps of $0.50-$0.75 within the next eighteen months. This growth and earnings potential translates into a stock target price of $18-$27 at the current pe of 36. The stock price may languish a bit in its trading range of $8.00 - $10.00 until sales announcements are made, analyst coverage is initiated or incremental improvement in revenues and earnings is exhibited. With just 8,111,300 basic and 8,394,906 diluted weighted average shares outstanding it won't take much to move the stock.
The recent acquisition could reduce the time it takes to reach my price target range as the original analysis was made exclusive of such an event.
Stay tuned!
Tom |
