I felt the report was very fine. Would not have minded another percent or two revenue growth, or another penny or two of EPS, but the debt paydowns, and EBITDA is pretty top drawer to me. I really like the way the CEO repeated that they just did not achieve at the high standard they have set.
Longs should feel very comfortable after that report. The stock wont get to double digits next week. It may take a year to get there. Or it might just take 2 months. Whether ETM can get to $14 or above I feel less confident about, but the next couple of qtrs will tell us.
As mentioned in the conference call, YTD free cash flow of $59.9 million is $11.7 million ahead of last year's free cash flow of $48.2 million . The only reason net income is down is due to the non-cash YTD income tax charges of $15.6 million. The earnings shortfall quite likely results from under-estimating the non-cash income tax expense in the earnings estimates.