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 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, including Intel (INTC), Qualcomm (QCOM), Kinder Morgan (KMP), F5 Networks (FFIV), eBay (EBAY), Microsoft (MSFT), Inuitive Surgical (ISRG), Chipotle Mexican Grill (CMG) and Google (GOOG).
Here is just a tiny sample of what BullMarket.com wrote about Qualcomm:
Qualcomm designs, manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies.
The company reported a profit of $2.23 billion, or $1.28 per share, for the quarter that ended March 25th, which was more than double the $999 million, or 59 cents per share, it reported for the year-earlier period.
Qualcomm's adjusted net income excluding one-time and non-cash items was $1.01 per share, which topped the consensus analyst estimate of 95 cents.
Revenue surged by 28% to $4.94 billion, up from $3.87 billion last year and slightly ahead of the $4.93 billion consensus.
Looking ahead, Qualcomm said it estimates that approximately 787 million to 803 million 3G/4G devices were shipped during calendar 2011, an increase of approximately 21% year over year at the midpoint. It believes that between 885 million and 945 million 3G/4G devices will be shipped in calendar 2012, driven by strong smartphone shipments in both developed and emerging regions. ...
Qualcomm has surpassed analyst EPS estimates each quarter over the past two years. Over that stretch, the stock has risen six of eight quarters. Seasonally, the stock has risen two of the last four years. ...
Outside of earnings, Qualcomm is a play on the long-term secular trend of growing smartphone sales. As the key patent holder behind the CDMA codec used in 3G/4G technology, the company is one of the biggest beneficiaries of the shift to smartphones and the transition to LTE networks. Its impressive patent portfolio gives it a huge revenue stream that, importantly, is derived based on a percentage of revenue, not units sold in most cases, while its MSM 8960 Snapdragon processor is the preferred choice among high-end smartphones.
The company's biggest problem in the near term is that demand for its 28nm chips is currently outstripping supply due to manufacturing constraints. While that is an issue, of all the problems to have, it is one of the better ones. ...
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 recent correct calls BullMarket.com made for Q4 were:
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