Overreaction?EPS was a significant beat (a tiny profit vs estimates of an 11 cent loss). $208M revenue (up 48%) was also 27% better than expected while EBITDA was 98% better. China is doing well and guidance for the year was slightly raised to over $1B. Investors reacted to a weaker Q1 forecast ($52.2M vs $65.2M) rather than looking at the decent full-year guidance. One issue is margins which were 66.4% versus expectations for 69.2% due to some inventory write-offs. While this has concerned some investors, we think that the subsequent decline in the SP of GOOS was an overreaction.
So said 5iResearch last week. GLTA