INFU
My Take on the INFU quarter.
Quarter was obviously less then I expected, I was thinking .06-.07 instead we got .05. I was thinking 18 Million in revs we got 16.3 million.
Now guidence of High Single digit revenue growth get us to about 17.8 Million average in 2015 per quarter, even if we use 7%.
GM are about 71.5%, that get us to 12.7 Million GP average quarter in 2015.
OE were 8.8 million this quarter, and IE was 700k. Lets add another 500k and say that comes to 10 million a quarter to be conservative.
That is 2.7 million Income before tax. at a 40% tax rate that get us to .07 a quarter. or roughly .28 annualized. But as I said many times before you never know with earnings.
Overall the revs were a little slower then I thought they explained their was a one time big order last year this time. But more importantly to show .05 EPS on only 16.3 million in revs, and furthermore essentially a 50% tax rate is showing they got costs under control, and with their high margins business any additional revs will hit the bottom line.
I believe the stock is too cheap to sell in the 2.60's. now am I gonna sit here and tell you this is the quarter I dreamed about the answer would be no. But what I will tell you is this quarter like last quarter is showing they are finally being able to generate decent profits, add in top line growth, and I could see quarters next year where they vary from .06-.10 Quarters, depending on a number of variables. either way I still find it too cheap in the 2.60's. So I would say my thesis is intact, and more importantly this quarter is showing that the company in my opinion has figured out profitability, and like I expected is finally being able to have profits run to the bottom line in my opinion. All is just my opinion, and I could always be wrong though.
