QCOR’s upcoming earnings report is Wednesday, Feb. 22, and will show their TTM EPS saw a 40.5% increase (from 0.83 to 1.17). This increase is pretty much fact, as a 2/16/12 8K filing presented a pre-release of information showing net income (before taxes) will be in the range of $41M to $43M. Based on that data and the expected tax rate, the quarter ending 12/31/11 should yield an EPS of 0.44 (= 42/33.7 x 0.35).
The 40.5% TTM EPS change represents a big chart play, especially after a StreetSweeper report back in January allowed shorts to drop QCOR’s PPS by 19%. However, the rather weak StreetSweeper report was effectively refuted in a rebuttal issued by QCOR. Note QCOR earnings are expected to rise throughout 2012, which is attributable to effective marketing of their approved drug for several conditions. QCOR has lots of cash, and should do well in 2012.
Backup info:
Period___________________12/10____3/11____6/11____9/11_____12/11 Diluted EPS________________0.10____0.17____0.21_____0.35_____0.44--(projected) Net.Inc.B4_tax______________10.9___16.6____20.4_____33.7______42--(projected) Net.Inc.after.Tx_____________6.42___11.2_____13.87____22.85____28.48--(projected) ratio income B4/after tax____________________1.4704___1.4747___1.4747--(projected) Sharecount________________65.39___65.37___65.46____66.02____66.02--(projected) N.I./(EPS x Sh.Ct)___________0.9813__1.0099__1.0093___0.9889___0.9889--(projected)
Soon after this rebuttal was issued, StreetSweeper's short position decreased substantially; evidently they covered when they saw the preliminary news of QCOR's upcoming blowout earnings report. However, not all shorts have covered, based on NASDAQ latest daily short interest.
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