Q1 was a slight beat but broadly in line.
Guidance for Q2 is well below expectations, top and bottom line.
- Rev increase of 7-14% YoY, vs. consensus of 16.5%
- Adj. EBITDA of $740-795MM, vs. consensus of $950MM
- EPS of $11.6-12.5 vs. $14.9 consensus
I wouldn't panic but that revenue miss isn't good. The Adj. EBITDA and EPS miss are neither here nor there, since they are basically made up numbers anyway. Still a very solid company. 95% Gross Margins, 30%+ net margins! Can you spell monopoly?!
The global economy is definitely getting soft.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.