I see what you are saying........ i just don't like investing on...

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xmanrocks

1,571 Posts.

28/06/17

11:40

Post #: 25535496

Originally posted by Beany72 ↑

I wouldn't be so sure on the omission of a profit upgrade. FY16 had target revenue of 105m with profit upgrade issued to 120m and revenue came in at 127m. This was 5% beyond guidance and I'm happy for a company to not be over exuberant with issuing guidance figures. When you're forecasting 15% growth at the top end and to exceed that by 5% = +33%.

Put into perspective, RXP to meet upper end of FY17 guidance is $146m of which $70.6m was achieved in the first half and the company generally reports much higher 2nd half profits. What caught my interest is that the company declared similar growth for FY18 with revenue +10-15% and EBITDA margin 13-14%.

Column 1 Column 2 Column 3 Column 4

1 FIN YEAR 1ST HALF 2ND HALF TOTAL Revenue

2 15 36.4 42.8 79.2

3 16 55.8 71.3 127.1

4 17 70.6 146

5 18 168

Expand

I see what you are saying........ i just don't like investing on the basis that a forecast is perceived to be low and that an upgrade can be expected.
That's just not logical and when Mr markets has higher expectations than forecasts, like you do, it is setting itself up for a disappointment. (this is not just specific to RXP)

RXP Price at posting: 73.5¢ Sentiment: Hold Disclosure: Not Held

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	Column 1	Column 2	Column 3	Column 4
1	FIN YEAR	1ST HALF	2ND HALF	TOTAL Revenue
2	15	36.4	42.8	79.2
3	16	55.8	71.3	127.1
4	17	70.6		146
5	18			168

I see what you are saying........ i just don't like investing on...

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