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 two years, BullMarket.com used the data it has collected to correctly predict investor reactions for nearly two-third of the stocks it's previewed.
In its latest earnings preview, BullMarket.com looks at several popular stocks, including SodaStream (SODA - News), Blue Nile (NILE - News), priceline.com (PCLN - News), Nordstrom (JWN - News), Nuance (NUAN - News), NVIDIA (NVDA - News), STEC (STEC - News), and Cisco (CSCO - News).
Here is just a tiny sample of what BullMarket.com wrote about Nuance:
Nuance is a provider of speech and imaging solutions for businesses and consumers around the world. The firm's software products range from speech recognition to PDF readers and document conversion offerings. ...
Last quarter, the company whose voice recognition technology is used in the Siri application on the iPhone 4s missed revenue and profit estimates for its fiscal first quarter.
Nuance reported its net income rose by 18.7% to $360.6 million, which was well short of the $391.6 million that analysts had forecast.
The company's adjusted net income equaled 34 cents per share, which was also shy of the 36 cents that analysts were expecting. ...
Nuance pre-announced its Q2 results on April 26th, saying adjusted revenue would fall between $416 million and $418 million, and that it would report adjusted earnings of 42 to 43 cents per share, up from its prior guidance of 36-40 cents. Analysts were looking for 39 cents of profit on sales of $410.1 million. It also closed on its purchase of Transcend Services, a provider of medical transcription services. ...
Nuance has surpassed the EPS consensus six of the past eight quarters, missing estimates twice. During that period, the stock has risen the next session three of eight quarters. Seasonally, the stock has risen once in the past four years. ...
Outside of earnings, we think Nuance is a solid stock with a nice, largely recurring revenue business model. Services like voice to text for smartphones and on-demand solutions in the healthcare segment are good growth drivers, while we've also always felt that voice-powered search could one day be big.
Perhaps most importantly, Nuance's voice recognition technology is powering Apple's new Siri feature on the iPhone 4S, while Apple's (AAPL - News) technology allows for the intuitive features of the App. With Siri driving huge iPhone sales, it should also drive solid sales for Nuance.
Some analysts believe that the competition is starting to close the gap in speech recognition technology, where Nuance has had a nice lead, but it is also believed Apple tried using another voice recognition technology for Siri first and it didn't
work nearly as well. ...
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.
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