Would you view this drop as a buying opportunity or would you wait to see if revenue improves?
EPS of 28c beat estimates of 24c; revenue of $57M beat estimates of $56.1M. EBITDA of $9.5M beat estimates by 3%. But guidance came in light at $57M, vs estimates of $58.7M. Expected F/x headwinds really hurt guidance. Sales rose 16%. EPS more than tripled year over year. Cash is $82M. At the guidance level, growth is expected at 11%. The stock's reaction is very harsh, and probably more than overdone, but it is that type of market these days. Investors are worried about a lot of things, and a miss is extrapolated to mean that everything is turning. This is not likely the case here, BUT....The stock is at 26X earnings and with its new expected growth rate is could be viewed on the expensive side. We think a buy opportunity is going to set up here, but we would view it more as a HOLD until the current market angst settles down a bit.