supercom ltd tracking solutionsIf investors push shares of Supercom Ltd (SPCB) down on missed analyst estimates, GeoInvesting may look to pick up shares since 2015 guidance is bullish. The company provides traditional and digital identity solutions to government, and private and public organizations worldwide. SPCB reported Q4 2014 financial results:

  • Q4 2014 revenues of $8.2 million vs $2.9 million in the prior year below analyst estimates of $13.75 million.
  • Q4 2014 non-GAAP EPS of $0.17 vs $0.03 in the prior year and below analyst estimates of $0.44

Quotes from management:

We enter 2015 with a strong backlog, enhanced visibility for the future, and growing confidence that we have the right solutions, at the right time, in the right markets. We are well positioned for the future.

The company reiterated its expectations of revenue growth for the full year ended December 31, 2015 to exceed 40% on a year-over-year basis and anticipated non-GAAP EPS in 2015 to exceed $1.20 per share.

Potential P/E Multiple of 15 for Supercom Ltd on 2015 Guidance

We think the stock could ultimately trade at a P/E multiple of 15 for Supercom Ltd on 2015 guidance. It is worth noting that SPCB recorded a fully taxed provision during Q4 2014, while it had been recording little to no taxes in prior quarters. We are attempting to determine if analysts had made a provision for taxes in their estimates.


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