Sal, What numbers were you looking at?
"By the way, USRX *did* meet their EPS numbers, but the "quality" of those earnings are, in fact, subject to scrutiny. The truth is, revenues were weaker than the earnings numbers."
Actually, revenues were up 77% versus a 60% gain in earnings. In other words, revenues grew faster than earnings. The gross margin, a strong indicator of earnings quality, was at its highest level of any quarter since 1993. Expenses, led by sales and marketing, grew faster than revenues. The company did not manipulate by "things like lower expenses" bur rather met the EPS expectations despite a substantial (more than doubling) increase in sales and marketing expenses.
Analyst "all over Wall Street" were not lowering their numbers. A couple of analyst known for perpetually being at the high end of expectations were reigned in to set up for better than expected results through the remainder of the year.
BTW, Back end loading means that more shipments went out in December than in earlier months. The channels don't take product they don't need without substantial discounts. The highest GM in 3 years (despite a less favorable mix) does not suggest much discounting. Perhaps all those shipments were native 56k ready to hit the retail shelves by the end of this month - a good 6mos before any ROK based competition. |
