Predictions good/bad/ugly ?
6 replies (most recent on top)
Ugly wins. Organic rev growth 4.5%. Snow leaves without being close to his double digit growth dream. EPS down .. even below low estimates. Ba bye Frederick.
Note that 762,000 FDS shares changed hands on Friday and the stock dropped $2.70. Friday was also a “triple witching” day, which is when options, index futures and index options all expire on the same day. This causes greater volatility. However, holders are concerned re decelerating ASV and a potential guidance revision downward, so they sold ahead of earnings. It is possible/probable that the Board saw this coming and decided to get ahead of possible activist activity by replacing the CEO. A lot of attention will be paid to the call on Monday, and holders are very weary of the ASV misses. In three months, there will be a new CEO, who will bring a new CFO. The new CEO will do a 90 day listening tour and then will replace most of the ELT. The board will also likely face activist action because it let all of this happen even though the board was warned of all of this coming at this time LAST YEAR. Instead, it was “let’s shoot the messenger” and the board bought it. Why did the head of FP&A, the head of pricing, and the head of IR leave and the #2 in IR leave? They all saw that messengers get shot.
Weather forecast by CFO - cr-ppy as always as long as she is here. Her best idea always cutting people and expenses.
Agree with that. They will lower bonus accrual again to bump up eps and margin. Can’t do anything to hide ASV deceleration
Guide to the low end of ASV range, margin and EPS better than expected
Positive surprise.