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Previewing Earnings for Cisco, NVIDIA, NetApp, Whole Foods & Others

the BullMarket.com Staff

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 results this week, including Cisco (CSCO), Zillow (Nasdaq:Z), Whole Foods (WFM), NVIDIA (NVDA), and NetApp (NTAP).

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 twice in the last four years. ...

Last quarter, NVIDIA said it earned $209 million, or 33 cents per share, during the quarter ending October 28th. That compared to net income of $178 million, or 29 cents per share, at the same time last year.

Revenue increased 13% from last year to $1.2 billion. The biggest gains came in NVIDIA's consumer products division, led by shipments of a new processing chip for smartphones and tablets. Sales in the consumer products division jumped 28% from the same time last year.

Analysts expected NVIDIA to earn 30 cents per share on revenue of $1.19 billion.

NVIDIA forecast revenue of $1.02 billion to $1.18 billion in the fiscal fourth quarter ending in late January. Analysts have forecast revenue of $1.2 billion for the current quarter.

The company also extended a commitment to spend $2.7 billion for stock repurchases and said it would initiate a 7.5 cents per share quarterly dividend. ...

Outside of earnings, Outside of earnings, NVIDIA has been doing a good job of expanding beyond its core graphic technology for PCs. However, the company still derives about 80% of its revenue from the PC ecosystem. While PC sales have been weak, NVIDIA's GPU does appear to be gaining market share from rivals.

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. ...

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 Q4 so far were:

  • to be bullish on Netflix (NFLX) ahead of earnings.
  • to be bullish on Shutterfly (QCOM) ahead of earnings.
  • to be bearish on Akamai (AKAM) ahead of earnings.
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