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 20- to 30-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, including Priceline.com (Nasdaq: PCLN - News), Sotheby's (NYSE: BID - News), MarkWest Energy (NYSE: MWE - News), Sodastream (Nasdaq: SODA - News), Costco (Nasdaq: COST - News), PetSmart (Nasdaq: PETM - News), and STEC (Nasdaq: STEC - News).
Here is just a tiny sample of what BullMarket.com wrote about MarkWest:
MarkWest Energy Partners that engages in the gathering, processing, and transportation of natural gas in the United States. The company also transports, fractionates, storages, and markets natural gas liquids; and gathers and transports crude oil.
The MLP reported record distributable cash flow for Q3 and increased its guidance. DCF jumped 56% to $85.3 million, up from $54.7 million a year ago. That led to a distribution coverage ratio of 1.38x for the quarter.
Net income attributable to the partnership was $140.3 million, or $1.77 per share, compared to a loss of -$27.2 million, or -39 cents per share, a year earlier. As we've noted previously, earnings aren't a very good performance measure for master limited partnerships (MLPs) given all the non-cash expenses in the numbers. Operating revenue rose 37% to $400.9 million.
Adjusted EBITDA rose 28% to $107.0 million from $83.7 million. Segment operating income, which does not include realized gains/losses on commodity derivative instruments, rose to $147.8 million from $106.6 million. ...
Over the last two years, MarkWest has beaten the earnings consensus six of the past eight quarters, missing estimates twice. During that period, the stock has risen the next session six of eight quarters. Seasonally, the stock has risen three of the past four years. ...
Outside of earnings, MarkWest is well positioned in the burgeoning Marcellus Shale, and has a long runway for growth by helping to build out the midstream infrastructure in the region. The company recently bought its JV partner in the region, and will now form a new JV to help build out midstream infrastructure for the nearby Utica Shale.
The company is also benefiting from the strong NGL environment and the wide spread between oil and natural gas prices. With some of the fastest distribution growth in the MLP space, we think MarkWest is an attractive option for income-oriented investors.
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 recent correct calls BullMarket.com has made for Q4 were:
to be bearish on Deckers (Nasdaq: DECK - News) ahead of earnings.
to be bullish on Salesforce.com (NYSE: CRM - News) ahead of earnings.
to be bearish on Dell (Nasdaq: DELL - News) 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 33.3% from 2008-2011 versus a -14.4% return for the S&P, a 47.7% 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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