When Micro Focus International (MFGP) reported its first-half earnings for 2019, investors reacted badly. The stock fell from the 25 to $27 level and down to $22. At these levels, the stock offers a decent dividend and a compelling valuation.
Micro Focus reported revenue declining 6%, which investors did not expect. Even though management forecast Revenue falling 4 to 6%, investors speculated that the company would beat its own guidance. Still, diluted earnings rose 8.4% and Cash Flow came in at 429.9 million dollars in the first six months ended April 30th, 2019.