$5.50 this year IMO, cheetah. And, $6 is not impossible.
I look at it this way..., FY15Q1 EPS was up 88% over last year Q1, and their Q2 guidance equates to growth in EPS of 81% over last year's Q2. Given this, they are on pace to grow EPS for the first half of FY15 by 84.5% ($2.38/$1.29) over last year. If you apply the 84.5% yoy growth rate to the entire FY15, the EPS for FY15 comes in at $5.98 ($3.24 + 84.5%).
I know the big assumption in my thinking is that the current rate of earnings growth will continue throughout the year. But, whenever you forecast, you have to assume something, right? I like their chances of sustaining the yoy EPS growth we've seen so far in early FY15 through at least this year given all the sales, profitability, and growing addressable market catalysts for SWKS right now. I just don't see them falling flat the next few quarters.
My thinking is in line with yours', richmas. Although, I believe they get to a ttm EPS $7 at the mid-point of FY16 which is through 3/31/16. But I won't quibble over one or two quarters. 😊
At Raymond James they emphasized $7 with great confidence. I think they will have TTM $7 EPS sooner than most believe.
Yep. There was a 9.1% pullback to an intraday low of $77.20 in fact. That was a great opportunity to add shares. Lately, I've been adding on any 2.5%+ pullbacks because they've been so shallow and brief.
Of course, pullbacks will happen. When? No one knows. If you are intending to hold for over three months, or so, buy now and hold. Imo
Sakenfuss? Hmmm...thought it was sackensuck. Oh well. 😎
It may not be a popular opinion, but I believe diversity is a portfolio killer. Mark Cuban said it best when he said, "diversity is for idiots". That's pretty harsh, but I agree with the spirit of his comment. I mean, research and anlayze, then pick A stock or a VERY FEW stocks and let them run. That's how I have always invested outside my retirement accounts...all of which are in aggressive growth funds which I never touch.
Ive done the research, and can find no other stock as compelling SWKS. So, outside my retirement funds, SWKS is the only stock I own. It has the management, balance sheet, products, market momentum (akin to the Internet 15 years ago, IMO), competitive advantages, and valuation. I believe the combination of all these factors makes it the best stock in the stock market. So, I'm all in. 😀
Through Q2FY15 SWKS will be up 84% in EPS vs. through Q2FY14, if their Q2FY15 guidance is correct. 84%!! Now, it's highly doubtful that pace of growth is sustainable over multiple years. It's also unlikely, given all the growth levers, that the pace of growth slows dramatically anytime soon.
Just another way to view the growth prospects.
Touché, cheetah. I didn't see the stock pulling back below $80 like you did. Albeit, the pullback was over by the time I finished my coffee. 😀
I agree that growth usually plays out over a longer period of time than we expect. In this case, however, I believe the very recent yoy quarterly growth of over 80% is representative of the next 12 months due to huge growth in SWKS' addressable market. So, yes, I think is time is different.
In the big picture, our timeframes to $7 are only about 18 months different. Not much for long term holders.