The slight earnings disappointment is compensated by the positive outlook on dividends, where management guidance is moving towards our more aggressive dividend payment assumptions.

Indications are positive towards stronger loans growth this year, which is becoming quite important in sustaining net profits amid the possibility of declining net interest margins.

The guidance is a disappointment. They're apparently not expecting revenue growth really to pick up.

We believe management wanted to reset the guidance bar as low as possible following four downward earnings revisions in the past six months.

I don't know if guidance is going to get much lower for AOL, but it still looks like it's kind of in a death spiral, ... If things are still deteriorating at AOL by late this summer, people are going to wonder whether or not Parsons can fix it as well.

While the quarter was a solid one and forward guidance positive, we believe that valuation is stretched.