Semler Scientific Inc. ($SMLR) came out with quarterly earnings of $0.41 per share on Monday, missing the Zacks Consensus Estimate of $0.51 per share, sinking 33% last week.
This compares to earnings of $0.60 per share a year ago, adjusted for non-recurring items. The share price on 2 May 2021 was $110. How wrong is it to say the share price, everything else being equal, should then be more around $74 (110 x (0,41/0,60)
I probably made a mistake trusting management when they said that earnings in Q3 and Q4 were lower not significantly higher, for the first time since uplisting, due to a new COVID seasonality and it would pick up again in Q1. Confidence was shaken during the Q1 2022 earnings call with the announcement they are only up 6% YoY and not 19% as expected.
The biggest factor behind Semler's lower earnings compared to the prior-year period was its increased spending on sales and marketing. Logical, since they just launched a new product.
Any feedback from others that are invested in this stock?
I am bothered by the lack of explanation on seasonality when pressed by others on the call, but they have stuff in the pipeline.
Any insights? Eat the loss or exercise patience?
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