Tom: Pasted below is the current First Call report from AOL:
FIRST CALL EARNINGS ESTIMATES
CRNR Cornerstone Imaging Inc. 01/13/97
Industry: Office Equip SIC: 3577
Latest Price: $9.00 1996 P/E: -
Analyst Recommendation: 1.7
QTR QTR FY FY
Dec 96 Mar 97 Dec 96 Dec 97
--- --- -- --
CURRENT MEAN EPS 0.13 0.06 -0.06 0.57
Number of Brokers 4 4 4 4
Median 0.14 0.06 -0.06 0.56
Standard Deviation 0.02 0.03 0.02 0.06
Current High 0.15 0.11 -0.04 0.65
Current Low 0.10 0.03 -0.10 0.50
Year Ago EPS 0.30A -0.20A 0.93A -0.06
Current vs. Year Ago Change -57% 130% -106% 1050%
Report Date wk/Feb 3 wk/Apr 17 wk/Feb 3 -
EARNINGS ESTIMATE REVISION MOMENTUM
Up Revisions last 7 days 0 0 0 0
Up Revisions last 30 days 0 0 0 0
Down Revisions last 7 days 0 0 0 0
Down Revisions last 30 days 0 0 0 0
EARNINGS ESTIMATES CONSENSUS TRENDS
Current Mean 0.13 0.06 -0.06 0.57
7-days ago Mean 0.13 0.06 -0.06 0.57
30-days ago Mean 0.13 0.06 -0.06 0.57
60-days ago Mean 0.13 0.06 -0.06 0.57
90-days ago Mean 0.12 0.06 -0.12 0.47
COMPARATIVE ESTIMATES AND TRENDS
Industry - Office Equi 11.44 6.52 35.30 38.88
Current vs. Year Ago Change 11% -10% 13% 10%
Sector - TECHNOLOGY 9.21 8.25 30.36 38.93
Current vs. Year Ago Change 12% 26% 3% 28%
WSJ/DJ US Index 10.14 10.03 38.31 44.13
Current vs. Year Ago Change 9% 15% 8% 15%
Ratios Relative To: Company Industry Sector WSJ/DJ
P/E on 1996 Cal Yr Mean - 17.22 25.24 18.75
PEG on 1996 Cal Yr Mean - 1.70 1.50 1.61
RECOMMENDATION AND GROWTH RATES
RECOMMENDATIONS LONG TERM GROWTH RATES
Current Mean 1.7 Next 5 yrs - Median 20%
Number of Brokers 3 Number of Brokers 3
Industry Recommendation: 1.8 Industry Growth Rate: 10%
7-days ago Mean 1.7 Next 5 yrs - High 30%
30-days ago Mean 1.7 Next 5 yrs - Low 15%
60-days ago Mean 2.7 Last 5 Years 84%
90-days ago Mean 2.7
Diff. from Industry +0.0 Rel. to Industry 2.0
Diff. from Sector +0.3 Rel. to Sector 1.2
Diff. from WSJ/DJ US +0.5 Rel. to WSJ/DJ US 1.7
Transmitted: 1/14/97 1:16 PM (E_CRNR)
As you can see, industry P/E for 1996 is 17.2, but long range forecast for CRNR shows it outstrips every indicator. Both First Call and Zack's are calling .13 for 1996 4-Q and .57 for 1997. If CRNR exceeds estimates for 4-Q, then year's estimates will be revamped upwards. I frankly have no idea what CRNR's P/E should be or will be. All I know is that there is great potential for upward momentum for a company that demonstrates to the market that it has returned to profitability and has a high probability of solid earnings growth. Let's take it one quarter at a time.
Tom, after submitting this response, I see that the Silicon Investor published format makes the tables very difficult to read. Sorry, don't know how to fix that, but if you're on AOL you can pull up First Call Earnings and Estimates.
I also see that First Call has Cornerstone pigeon-holed in the office equipment industry, which I'm not sure is appropriate now because of the company's redirection to software. If we use the Technology Sector P/E of 24.25, and 1997 earnings forecast of .57 is met, then we're looking at a stock price of 14 3/8 by year's end, but with an above-average projected earnings growth, CRNR's P/E might be higher than 24. We'll have to wait and see. |
