Earnings AssessmentXTC revenue of $100.7M matched estimates. Sales fell 17% but excellent cost control saw earnings rise sharply and the EPS of $0.27 blew away the $0.07 estimate. Free cash flow remains good, and the company continues to buyback shares. With no debt, excess cash, and good cost control, the company is well positioned for some big earnings growth IF sales growth can resume. It is cheap, and 10% growth is concensus for next year. It will need to do more than that to get above $10. $15 would be aggressive, but we also think that XTC is a potential takeover or privatization target, so that level is not beyond possibility.
So said 5iResearch in response to a question about whether XTC will ever return again to the $12-$15 level. GLTA