Which Stocks Look Ready to Pop or Drop After Earnings This Week?
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.
In its latest earnings preview, BullMarket.com looks at several popular stocks, including Intuitive Surgical (ISRG), Intel (INTC), IBM (IBM), eBay (EBAY), Kinder Morgan (KMP), Chipotle Mexican Grill (CMG), Bank of America (BAC), and Google (GOOG).
Here is just a tiny sample of what BullMarket.com wrote about Intel: Intel has topped the EPS consensus six of the past eight quarters, meeting the consensus twice. During that time, the stock has risen the next session four of eight quarters. Seasonally, the stock has risen two of the last four years. ...
Last quarter, Intel reported net income of $2.0 billion, or 39 cents a share, which was down -29% from $2.827 billion, or 54 cents, in the same quarter last year. The result matched the Street consensus.
Reported revenue of $12.8 billion was in line with its guidance of $13.5 billion, plus or minus $500 million, down -5% from last year. Analysts expected $12.9 billion in revenue for the second quarter.
By segment, PC Client Group revenue of $8.1 billion was up 1.4% sequentially and down -7.5% year over year. Data Center Group revenue of $2.7 billion grew by 6.1% quarter to quarter but was flat with year-earlier results. Intel Architecture Group revenue of $942 million declined -3.7% sequentially and -15.0% year over year.
Unit sales for chips in Intel's PC client group declined by -5% from the year- earlier period but were up sequentially. The decline was less severe than the - 11% drop predicted by some independent forecasts.
Gross margin was 58% for the quarter, up two percentage points on a sequential basis. The company guided for gross margin to improve to 61% in the current quarter. It also guided for revenue of $13.5 billion, plus or minus $500 million, for the current quarter, which would be roughly in line with last year's results. ...
Outside of earnings, Intel's strength over the years has been its domination of the PC marketplace along with Microsoft (MSFT) in what has generally been referred to as the "Wintel" partnership. But as consumers gravitate to tablets over PCs, Intel has had to scramble to catch up and its increased investments in R&D as well as plants and equipment reflect that need.
But one of Wall Street's main fears is that Intel is building excess fab capacity. The company did announce last year that it would do some "foundry" work for chipmakers it doesn't view as competitors on a specialized basis. It would take up some excess capacity, but that is a lower-margin business that is dominated by players like Samsung. The plan has left some analysts scratching their heads.
On the plus side, Intel still has a strong position in the server market and the PC market is still substantial worldwide. Emerging markets offer hope for future growth and the company's Haswell line of processors could help Intel make inroads into the mobile space. ... 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 Q2 were:
