Power of EarningsEarly in the week, the crew at 5iResearch (who have generally been supportive of PHO over the years) were provided a list of companies by a subscriber who was looking to consolidate his holdings into a smaller number so needed advice on which ones to sell. One of the stocks 5i suggested that could be let go was PHO. A couple of days later the earnings came out.
They freely admitted that they had to check the numbers twice because they were so impressive. EPS was double expectations ($0.06 vs $0.03), sales were $17.3M vs $14.5M, EBIDTA was a 42% beat, cash rose $8M to $41.2M, and sales rose 96%. Another positive development was that the backlog rose nearly 50% since year end to $30.9M. During the conference call, management sounded confident. In summary, they called it a "knockout quarter."
A question later followed about their top recommendations for small and midcap tech stocks. This time PHO was one of the seven companies mentioned. GLTA