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The offer, which puts Rhodia's enterprise value at $9.4 billion, is at a multiple of 7.3 to the company's recurring earnings before interest, taxes, depreciation and amortization.
The company predicted that annual recurring earnings, adjusted for one-time charges, would be $1.35 to $1.70 a share; earlier the company had forecast $2.15 to $2.30 a share.
The stocks in Fergie's portfolio cover a wide range they include infrastructure and healthcare but the common theme is predictable, recurring earnings and substantial opportunity for growth.
Boeing earned $0.70 in the first quarter, $0.90 excluding the health care charge our politicians assured us would save money, and reiterated recurring earnings for the year at just under $4 per share, in line with JSA's Paul Nisbet's forecast.
(Disregard the writeoffs if you like. The composite estimate for recurring earnings from Bloomberg is $50.20 for 2001. The p/e by that score is still high at 19).
(Disregard the writeoffs if you feel so bold. The composite estimate for recurring earnings from Bloomberg is $50.20 for 2001. The P/E by that score is still high at 19).
Similar(51)
The Company currently expects revenue of approximately $51 million, recurring revenue of approximately $41 million and non-GAAP earnings per share of approximately $0.16 for the fourth quarter of 2010.
Steady eddie stocks can be thought of as companies with a more stable growth pattern, with less variability in revenues, cash flows and earnings frequently due to a high percentage of recurring revenues.
Furthermore, the step-up in recurring revenues and customer retention rate points to improving quality of earnings.
"We also drove 51% growth in our product deferred revenue related to our recurring software and subscriptions which now stands at $4 billion," CEO Chuck Robbins said during the earnings call.
Yesterday, President Barack Obama jump-started the recurring battle over the Bush-era tax cuts with his proposal to retain those tax cuts for all Americans on their earnings under $250,000, while reverting to the Clinton-era rates for any income above that amount.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com