- Revenue was up 0.5% Y/Y, margins and EBITDA loss improved but Q3 guidance was surprisingly weak. EBITDA turnaround expected in a year on $100M quarterly sales.
- The contrarian turnaround thesis is taking a pause now as OCLR's Q3 guidance disappoints. The costs are lower but sales are expected to keep falling in Q3.
- I confirm my long thesis but update my target price down to $2.3 per share on weak sales guidance. The stock still offers a ~30% upside within two years.