MLHR’s Uniform Adjusted EPS’ is not projected to shrink, contrary to as-reported EPS projections, and at current valuations any growth would warrant material upside

• MLHR’s profitability is materially distorted by accounting for operating leases and R&D

• As such, their UAFRS EPS’ is expected to grow to $0.84 in Q4 2017, and EPS’ over the next four quarters is expected to grow by 2%, not shrink

• At current valuations, markets are embedding expectations for 13% EPS’ shrinkage annually, which is directionally different than analyst projections for growth, warranting material upside

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Submitted June 27, 2017 at 09:14PM by Valens_Research http://ift.tt/2sPwUsV