AssessmentA very quiet BB. The first post is analysis of the earnings from Feb followed by a response to a question from last week. Opened a position this morning. GLTA
EPS of 25c blew estimates of 11c away. Sales of $49.3M beat estimates by 2%. EBITDA of $6.5M beat estimates by 31%. Guidance was raised, with margins improving. Revenue rose 27%, GAAP EPS doubled. Guidance calls for gross margin at 81%+. Net cash is $170M. We would consider results and outlook very solid, and would continue to endorse the stock.
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Are you surprised in the current weakness in the price action of DCBO since earnings were released? Do you think this is a decent entry point?
Very much so; considering EPS was more than twice estimates, the fact that the stock is now lower than it was on Feb 23 when results were released is surprising. It has also had broker upgrades since then. We have no reason to expect a bad Q1 report and would be fine chipping away on the buy side here. (5iResearch)