Previewing Earnings for Priceline.com, Green Mountain, Monster Beverage & Others

Indie Research

Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn't necessarily translate into a huge pop for a stock.

During earnings season, BullMarket.com publishes a comprehensive 25- to 40-page Earnings Preview report for the week ahead each Friday.

Over the past year, BullMarket.com used the data it has collected to correctly predict investor reactions for approximately two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks still set to report this week, including Groupon (GRPN), Green Mountain Coffee Roasters (GMCR), Priceline.com (PCLN), NVIDIA (NVDA), and Monster Beverage (MNST).

Here is just a tiny sample of what BullMarket.com wrote about NVIDIA:

NVIDIA has beaten analyst EPS estimates each quarter over the past two years. During that span, the stock has risen the next session four of eight quarters. Seasonally, the stock has risen once in the last four years.

Last quarter, the graphics chipmaker said its Q4 net income was $174 million, or 28 cents a share, up from $116 million, or 19 cents a share, in the same quarter last year. Analysts on average expected 24 cents, according to Thomson Reuters.

Its Q4 revenue of $1.107 billion was up from $953 million in the year-ago quarter.

It said revenue in the current quarter would be $940 million, plus or minus 2 percent.

Analysts were expecting revenue of $1.102 billion for the quarter ended in January and $1.067 billion for the quarter ending in April. ...

Outside of earnings, NVIDIA has been doing a good job of expanding beyond its core graphic technology for PCs. However, the company still derives a significant portion of its revenue from the PC ecosystem.

The company has some solid growth potential in tablets and high-end smartphones with Tegra; however, Tegra is not present in the iPad, and Samsung is also looking to move towards more of its own components, which could possibly be a headwind. Tegra4i, while promising, has also been delayed.

NVIDIA also recently announced a $750 million buyback to be completed by the end of January 2014, which would reduce the share count by about 10%. ...

The full BullMarket.com earnings analysis includes a look at historical earnings data and EPS trends for the companies above and more; examines past investor reactions to earnings in various contexts; gives options activity analysis; reviews previous-quarter earnings; and gives an opinion on both what earnings will look like and how investors will react based on the aforementioned data points.

Just a few of the correct calls BullMarket.com made for Q1 so far were:

  • to be bullish on Netflix (NFLX) ahead of earnings.
  • to be bearish on Baidu (BIDU) ahead of earnings.
  • to be bullish on Whole Foods (WFM) ahead of earnings.
  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 104.9% from 2009-2012 versus a 57.9% return for the S&P, a 47.0% outperformance, topping the benchmark each year since the start of the Great Recession. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited.)

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