Jamison Is Expecting Profitability Soon . . .
Over the past few years Jamison had expected profitability on several occasions. Capstone has always been improving and had approached that ($0.01) EPS. Improved fundamentals had prevented the EPS from eroding lower over the years. Instead, improved fundamentals have pretty much countered any negative Market conditions since 2008. And therefore the EPS has always been leveling upwards.
So up and into recently Capstone has always been so close to breaking even, or even stating a quarterly profit. But shipping, backlog, the market, and catering to customers needs were always a factor in the timing of past break-even or profit projections. Suggesting accurately that the timing of profitability would eventually catch up, and that time is now upon us.
Capstone is currently trying to transition from previous sustained ($0.01) Quarterly EPS into at least a breakeven situation, and on into profitable Quarters. And obviously, then on into sustained profitability... as Jamison suggests in a March 23, 2015 PR :
" Growth in new markets like Central America, South America, Africa and the Middle East will be critical over the next couple of years as we transition from operating losses into sustained profitability. "
Correctly interpreted . . .
This is NOT a statement saying that profiability will not be attained until a year or two from now. Rather, it IS a statement of "transition " into sustained profitability. As in "over the next couple of years". As entering profitability is now upon us. And the next step will be to obviously work to sustain it, in an estimated year or two window, starting now.
And you can't have an improved Yearly-EPS unless you have several positive Quarterly-EPS's leading the way. Just look at the analyst's positive $Four-Cent$ Yearly EPS improvement projections over the next year or so... That in itself would require several positive quarters.
Jamison's forcasting is looking to soon achieve profitability. And he is now already focused on the next steps of sustaining it. I suspect a near and intermediate term reversal that will be fulfilled long term as well, as Capstone continues to work on sustaining that profitability "over" the next year or so .
Analysts are positive on Capstone. And some that were negative have now turned positive, with short term strong upside price targets. They get it.
Spelled: J A M I S O N
AI
