This Week's Tech Earnings Winners and Losers: Apple, Fusion-IO, Juniper, and More

Indie Research

Earnings season is upon us in the tech sector. What should investors expect from these reports? What are the key storylines to follow and are these stocks likely to trade higher or lower in the wake of their results? In's earnings previews, available free to trial subscribers, key storylines are evaluated, analyst expectations are audited, and in depth valuation analyses are provided to develop fair value ranges for dozens of stocks. Next Inning's model portfolio has returned 291% since 2002, more than six times the return of the S&P 500.

In its upcoming earnings preview, Next Inning looks at several popular stocks, including Apple (NASDAQ: AAPL - News), Fusion-io (NYSE: FIO - News), Juniper Networks (NYSE: JNPR - News), Lattice Semiconductor (NASDAQ: LSCC - News), Maxim Integrated Products (NASDAQ: MXIM - News), and QLogic (NASDAQ: QLGC - News).

Here is just a tiny sample of what Editor Paul McWilliams wrote about Fusion-IO:"Fusion-IO was mentioned in that report when it was a privately held company, but not in any detail. Setting that aside, however, I think the report is something anyone looking at Fusion-IO, STEC Inc. (NASDAQ: STEC - News) or, for that matter, any of the emerging memory companies like Netlist (NASDAQ: NLST - News) should read.

"Fusion-IO is clearly much more than a hardware company - the core of its value proposition is software. Of course, that is true of any company in the enterprise solid state drive (SSD) market. I'm a big fan of software differentiation for several reasons. A successful software business model offers VERY low variable costs and huge marginal gross margins, as well as the opportunity for very durable differentiation.

"With its software products Fusion-IO optimizes its solid state drives for specific database applications as well as virtualizes the memory blocks. These are valuable features, but it's very hard to tell at this juncture if the differentiation will in fact prove to be durable. While that is debatable, what bothered me here was the proclamations last October from Wall Street that Fusion-IO will be the next VMware (NYSE: VMW - News). It always bothers me when pundits compare a relative upstart to a benchmark leader - no matter what Fusion-IO has going for it today to equal what VMware has accomplished will require many new successful products and years of razor sharp execution...." Just a few of the correct calls Next Inning has already made this earnings season include:

  • to be bullish on Linear Technology (NASDAQ: LLTC - News) ahead of earnings. (up 10% year to date)
  • to be bullish on Intel (NASDAQ: INTC - News) ahead of earnings. (up 10% year to date)
  • to be bullish on Triquint Semiconductor (NASDAQ: TQNT - News) to start 2012. (up 19% year to date)
The Next Inning model portfolio is up 18% year to date versus 5% for the S&P 500. Click here to start your free 21-day trial membership to Next Inning Technology Research and get McWilliams' in depth reports, earnings previews, and real-time trade alerts.
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