I just caught up on the earnings guidance release. I haven't done a full analysis yet and will do so soon, but I see this guidance as positive.
Given revenue will be up by 5%, and R&D income will be down, this means that the underlying revenue will actually be up by more than 5%.
Same for profit. If they are expecting it to be up by 5% that means last year's profit of $252k will be at least $265k. Obviously this is only a small increase BUT this is after expensing pre-launch costs for Pinpoint and the lower R&D grant. Given the director options issue is also in the period (and I expect that this cost is also greater than the prior year) I think this bodes very well for the underlying profit.
I also expect MGM to over deliver on this guidance. Every other time they have provided guidance they have over delivered on it. I sure hope they do so again this time.
I'm hoping this is a great start for a fantastic 2014 for MGM.
Cheers Marv
DISC: I hold plenty.
MWR Price at posting:
$1.44 Sentiment: Buy Disclosure: Held
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