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Biotech / Medical : Biosource International -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (431)	3/9/1998 10:29:00 AM
From: Medhead	Read Replies (1) \| Respond to of 696

<<I'm kicking myself over a few beers that I didn't ask them why they fell 3 cents short of Zack's consensus earnings. Would have liked to see how they responded as well as how they spun the facts in the answer. Would have been a great question - Mr. Chamberlain, did the analysts screw up here or did you? :)>> I am an infrequent contributor but I may have an answer. Consensus estimates for the quarter were $0.11 or $974,554 in after tax income. At their 35% tax rate this would imply $1,499,313 EBIT. That represents an astounding 146% increase over 1996's $608,349!!! If that is what the Street expects, no company has a chance. I would say the analysts were their usual thorough selves and just added 25% to the $0.09 in Q4 1996, giving no thought to the tax situation. As it was, EBIT were up 78% for the quarter and 34% for the year. Other than the flat revenue number for the quarter, this stock looks like a steal. If there is a flaw in my reasoning, someone please point it out.