I wrote a post recently that gave some numbers. I got .63 as a starting point......based on identical quarter as last time, but with factoring in dilutive and interest savings effects. From .63, add for earnings of acquisition from point it occurred in quarter, and then for earnings from whatever organic revenue increase you assume.....I'm assuming gross margin like last time of upper 29s.
That's my angle....I think .78 might be hard to attain, but DXPE is known for some shockingly good quarters....IMO.
Well,I came at it from a bit of a different angle:
Q over Q revenue over the past few quarters has averaged over 5% so I took 5% as my number. Gross margins were actually 29.82% last quarter and also seem to be rising up toward the industry average of 32%. I chose a 1% increase in gross margin. Then, in calculating interest income, based on $9.5 million new cash, cash on account of $2.5 million and a quarterly increase in cash due to earnings of approximately $2 million - in addition to a 60% decrease in interest expenses - I pretty much zeroed out investment income and interest expense. So,here's what I ended up with:
Now, this being said, I also think that they have pricing power, so margins may increase faster than I think. They also seem to be collecting much faster than the last few quarters, so their ratios of receivables vs. payables has changed and it looks like they're cash positions could be even greater than I estimated - which would increase investment income (I est. 5.25% on their cash).