Taken from the Motley Fool today, March 10, 1997|
"Circuit board maker and contract manufacturer SIGMATRON INTERNATIONAL (Nasdaq: SGMA) lost $1 1/4 to close at $16 as Q3 earnings reached their second-highest level in company history, while revenues of $21.9 million were a record. So what's the problem? One of them is that
arnings per share (EPS) of $0.25 was down from the $0.26 recorded in last year's third quarter.
Dilution was another problem, as net earnings grew while EPS, the more telling measure of shareholder value, fell. Investors probably feel like they got the shaft because the company was so nonchalant about last week's Monday plunge of $8 3/4. One might also observe that the company missed its earnings estimate. However, there was only one estimate (of $0.30) collected by First Call. Another estimate, not included in that survey, was that of Steven Kornfeld of NatWest, who had estimated EPS closer to $0.26."
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