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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by wordlesson Aug 04, 2016 11:15am
99 Views
Post# 25110022

RE:RE:RE:RE:RE:Shorts Have 5 Trading Sessions to Cover

RE:RE:RE:RE:RE:Shorts Have 5 Trading Sessions to CoverWe can agree to disagree. When they say that their published translated results are being lowered due to FX translation. That in my mind = lower guidance. They guide for EPS or EBITDA or Sales of XXX and they say actual results will be XXX - 1 due to FX issues. That is lowered guidance. Maybe they meet their sales targets etc. but translated financial results are what will determine their ability to pay off all the debt at the the edd of the day.
puma1 wrote: that is not a change in guidance, it is a change in the FX translated results. Guidance should be benchmarked against what they set a year ago as the Sales at that time based on that FX rate.

the market, as it has done, will adjust for FX which frankly could change any minute and no one agrees upon anyway. RBC is using $1.20 - Scotia are $1.33 - use what you want but keep the Sales guidance unchanged unless you think that there is an overall non-translated reduction.


CIBC even referenced this issue in their release :

His 2016 earnings-per-share estimate moved to $5.78 from $6.29, compared with the Street at $6.14 and guidance of $6.29 to $6.77. Mr. Gowd expects Concordia to reduce its 2016 guidance upon release of the quarterly results "to reflect the new FX reality unless guidance remains based on constant currency assumptions." Mr. Gowd continues to rate Concordia "sector perform."




wordless wrote: Lower guidance is not in the cards? Please explain?

When sales of $600milUSD come from the UK and the GBP is down 20%. What do you think you I'll happen to the guidance in the second have of the year? Sales guidance will be revised down. Face it.

EBITDA impact will be much smaller as the costs associated with those UK sales are demo jger in GBP and other European currencies. But EBITDA guidance will also likely be lowered for second half of year but to a much lesser  stent than sales guidance.

Debt will be down from unrealized translation gains from ththe GBP demonized debt so thei debt guidance will likely change as well. But this one will be a positive revision.


cavinsin wrote: dream on select, lower guidance is not in the cards, do not cover until next Friday, you will do well f.. id...t. payed basher 






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