Q4 earnings estimateHere is my best shot at a Q4 earnings estimate. Unfortunately, my numbers skills are not up to Firecracker's level, but hopefully this will be close.
Earnings before adjustments = $7M
Adjust for repricing gain = +$3M
Adjust for loss on hedges = -$3M
Earnings = $7M
Repricing gains are always hard to figure, and I am not sure how they will account for the hedges, so I will give an earnings range of $4M to $10M.
Earnings of $7M would be $28M annualized for a P/E of 190/28 = 6.8.
Earnings should improve in Q1 with the new treatment costs. A reduction of $.10 in treatment costs should add about $7M per quarter to earnings.