Savvy Trades and Investments

[abh3vt]

I don't get the AVNW pop either. I guess they did beat the consensus eps estimates, but I think that was largely because the acquisition was delayed and so hardly hurt the Q at all. In the presentation, the company stated that they expect GM in the 2H to be 34-37% of revs (they just reported a very strong 38.7% GM in Q2). So that's not great. Plus, they are expecting incremental R&D and SGA costs of ~19MM (a range of 16-22MM) in the 2H as they invest in their acquisition and products. I'm taking that from the FY24 guidance slide in the presentation.

It doesn't add up to a great 2H for the company in terms of earnings comps (which are basically untaxed anyway because they have a lot of NOLs). Forward EV / Ebitda ratio looks to be about 8.6x at 37....I'd say its probably fairly valued to slightly overvalued given the lack of clear catalysts over the next two quarters.