That was a decent quarter for SVLF. Adjusted for the new accounting rules, revenue growth for the quarter was +23%, while pretax income grew at +27% for Q4. Tax rates in FY06 were significantly higher than last year....Q4 rates: 39% vs 30% y/y.
I would also note that the company has a history of being conservative with its forward guidance. Here is what they said at this same time last year:
"The Company is forecasting 2006 net income in the range of $17.0 million to $17.5 million, or $0.43 to $0.45 per diluted share. This represents a 21% to 25% increase compared to 2005 core net income of $14.0 million, or $0.36 per diluted share. In 2004, the Company's core net income was $8.1 million, or $0.21 per diluted share. "
FY06 actual net: 23MM, or 31% higher than initially forecast.
I wonder if they have done the same thing this year?