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 still set to report earnings this week, including priceline.com (PCLN - News), Nordstrom (JWN - News), Nuance (NUAN - News), NVIDIA (NVDA - News), and Cisco (CSCO - News).
Here is just a tiny sample of what BullMarket.com wrote about NVIDIA:
NVIDIA is a provider of visual computing technologies. The company invented the graphic processing unit (GPU), which generates graphics on workstations, PCs, game consoles, and mobile devices.
Last quarter, Last Quarter's Results: NVIDIA posted a fiscal fourth-quarter profit of $116 million, or 19 cents a share, compared with a profit of $171.7 million, or 29 cents a share, a year earlier.
Revenue rose to $953.2 million from $886.4 million.
On an adjusted basis, the chipmaker earned 26 cents a share. Analysts had expected EPS of 20 cents on revenue of $950.6 million. The company previously lowered its guidance ahead of the quarter.
GAAP gross margin for the quarter was 51.4%, 0.8% lower than the prior quarter and the company's original expected due to an additional charge in the quarter to settle a patent dispute with Rambus (RMBS - News). Non-GAAP gross margin, which excluded this charge, was 52.5%, consistent with the record gross margin the company reported in Q3.
For the current quarter, the chipmaker forecast fiscal first-quarter revenue of $900-$930 million. Analysts were expecting $944 million. ...
NVIDIA has surpassed the EPS consensus seven of the past eight quarters, missing estimates once. During that span, the stock has risen the next session five of eight quarters. Seasonally, the stock has risen once in the past four years. ...
Outside of earnings, NVIDIA has growth potential in tablets and high-end smartphones with Tegra, although we continue to be skeptical of how well tablets outside of the iPad, where Nvidia is not present, will ultimately sell, and competition is also increasing. Samsung is also looking to move towards more of its own components, which could possibly be a headwind.
NVIDIA is also feeling some pressure to margins as its move to 28mm wafers has not been producing the yields it had expected at present. The company has been known to issue aggressive guidance only to have to pull it back, most recently with Tegra, which hurts management's credibility.
On the plus side, NVIDIA's professional business, near a fourth of its business, remains a solid contributor. ...
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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