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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Davis who wrote (369)	4/7/1998 7:39:00 AM
From: Ron B	Read Replies (1) \| Respond to of 765

I have a few more questions, if I may. Why is the consensus EPS $.28-.29 for this quarter when the company earned $.35 and $.30 in the previous two quarters? I don't see anywhere that the company announced a slowdown in revenues. In fact, according to last quarters earnings release the company made clear that margins were increasing and that everything was fine. A year ago EQNX reported a 7% sequential gain in the 1st Q vs the 4th Q and of course subsequent gains in each qtr that followed. So, I don't see that there is evidence of a cyclical slow-down anywhere. An estimate of $.28 represents a whopping 20% sequential DECREASE & that's one reason I sold my origional position during the most recent rise to the low 20's. My own opinion is that the company IS growing sequentially and will see something like 5-10% growth over Q4. Even at 5% sequential growth, which would be the slowest growth in over a year, they would earn $.37 EPS on $8.6 mill in revenues. What I'm trying to say is the analysts may need to upgrade their estimates after EQNX reports in a week or two. What do you think? My other question is short--- Why did the number of shares jump from 3.286 million in Q3 to 3.638 mill in Q4 when the company bought back shares?