Canyon Services EarningsTravis:
On Canyon’s October corporate update, they are showing expected earnings of $1.35 for 2011 and $2.00 for 2012. YTD earnings are .48 for Q1 and (.11) for Q2 for a six month total of .37. This means that the total for last two quarters should be .98 or averaging about 50 cents. 2012 will also average about 50 cents per quarter. It seems that this stock should pop when the earnings are announced on November 7th. I picked up some additional shares last week at $11. Just wanted to get your thoughts?
Frank
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I think those numbers in Canyon’s presentation are analyst average estimates, not corporate forecasts, but it’s probably true that they wouldn’t include them if they thought they were much too high. Earnings should be dramatically higher in Q3 and Q4 than they were earlier this year, because their fleet is growing and, more importantly, because the Spring melt this year slowed their sales in Q2 a lot more than they had expected. I don’t know whether the shares will pop or not, but I do think the shares are still cheap even though they’ve recovered much of the drop they saw over the Summer. I still own shares, have not bought or sold recently.
If other folks are interested, the presentation is here: http://www.canyontech.ca/files/Presentations/Investor%20Pres%202011%20October%20w-Estimates.pdf
And they expect to release their Q3 earnings on November 8.