RE:RE:RE:RE:RE:RE:Earnings Estimates for Q3 and Q4I believe that he dividend will be discussed this year for payment next year ... well I'm hoping ... GLRA
quote=NoNameAtAll]I'm not sure what you are talking about with "EPS for comparition is not the best". I'm not saying to use EPS to derive expected stock price. I am saying that the analysts are predicting EPS, but their predictions for the four quarters do not add to their prediction of EPS for the year. It is literally as simple as 1+1+1+1 does not equal 4 situation.
As for using EBITDA and cash flow for measuring business. I agree that that EBITDA is a good measure of the health of the core of the business (and cash flow is essential to pay the bills). But, at the end of the day, a great EBITDA and negive EPS is terrible. it is only positive EPS that is going to allow shareholder equity to grow. Without at least an expectation of future positive EPS, company is sunk. Only high growth companies can sustain continued negive EPS because of the expected future hugh positive EPS. Don't forget, a company that never gets postive EPS is a company that can't pay a dividend. This is where I see BBD going: pay down debt to relieve the interest expense. Then the excess cash flow, combined with a postive EPS, will result in dividend being reinstated which will translate into futher funds holding the shares which will translate into a higher stock price. So, positive EPS is important in that respect. It looks to me that by 2025, the debt will be at a comfortable level, EPS will be good and dividend will be reinstated.
The Q2 free cash flow surprise is from orders with better deposits not from a better operational margin. That could not be guessed before the management disclosed it.
Taking EPS for comparition is not the best because depreciation and special items could cause big differences, without giving a better understanding of what is occuring. EBITDA and cash flow are better. [/quote]