Reports tomorrow before market open.
From Seeking Alpha
Revenue: the company indicated that revenue will be slightly lower than Q4, 2011. Therefore we give $350 million as our estimate.
Cost maintains as the same margin (18.70%).
I project a further reduction from their S&A expenses: from 38.97% to 37.1% with higher D&A cost ($73 million) and the same amount of interest payment ($55 million).
Net profit before income tax will be $26.53 million, about 10% higher than Q4, 2011 result.
I have no idea how much the company will pay for the income tax and will leave it blank here.
I project 50.25 million shares by the end of Q1, 2012.
Therefore net profit will be
.52/share for Q1, 2012 before income tax provision and one-time gain.
During the first quarter, 2012, company bought back $142 million of its debt using $70 million cash. This will give $72 million or $1.44/share one time gain .
Therefore the company may report $1.96 EPS before income tax provision.
Book Value: $140 – $9 million + $20 million (Q1 net profit) = $151 million = $3.00/share.
Stock has lost about 50% of its value since its recent high of $2.48. At $1.25, I believe that it is undervalued and will be a good entry price for long term investors.
Disclosure: I am long DEXO.