Scotia's Latest Forcast :)Price target still remains at $5.00 !!!
.Recent Update Text as of 6JUL14 Sandvine is scheduled to report Q2 earnings before markets open on Thursday,
. July 10. A call is scheduled for 8:30 a.m. at 866-215-5508. Expect 20%+ revenue growth to continue driving top line of $29.2M, EPS of $0.03.
We expect YOY growth to remain strong at 24%; however, due to a less favourable
product mix, compared to Q1, gross margin is expected to fall 400bps from last
quarter's inflated levels to 74.5% and more in line with the historical norm.
EPS is expected to decrease $0.02 sequentially on lower revenue and gross
margin. Cash generation is expected to remain strong in the quarter as both
earnings and favourable working capital flows are likely to increase net cash
$5.5M to $126M or $0.85/share . Expecting strength to return over 2H/14, growing 14% over 1H. Wireless momentum
is expected to continue over the remainder of the year, growing 77% in Q3 and
lifting total revenue to $32.6M, a new quarterly record. We believe a higher
concentration of follow-on orders will occur in Q3, increasing gross margins by
50bps to 75%. EPS is expected to be flat YOY at $0.04 due to a penny impact from
the equity issue. Cash generation is expected to remain strong at $4M. . Maintain Sector Outperform. Sandvine continues to be our top small cap pick due
to strong customer traction, improving operating leverage, leading positions in
growth markets, and low relative valuation.
Looking forward to Thus Morning Boyzzz :) $$$$