The temporarily suspension of RMD's share buyback program on the back of the recent acquisitions were not new news in the announcement. The CEO was quotes saying they will have to halt share buy backs for a number of quarters in order to get free cash flow back and remain on the growth trajectory. Also, given the recent rise in share price, I kind of almost understand why they would want to suspend this now.
In addition to falling short of the revenue target the quarterly reported a lower than expected gross margin and a greater than expected interest expense. But that was more acquisition related which was undertaken during the quarter. In my view, the reaction today was dead set as a result of falling shy of these but you have to say it's well and truly overdone and undeserving of a 12% hit.
RMD Price at posting:
$14.47 Sentiment: Buy Disclosure: Held
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