Which Stocks Look Ready to Sink and Surge with Earnings Next Week?

  • MH192’s number three main wheel burst during take off, says Hishammuddin – Bernama
    MH192’s number three main wheel burst during take off, says Hishammuddin – Bernama

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  • Bible banned from Pahang hotel rooms – Bernama

    The Pahang Islamic and Malay Customs Council (MAIP) has prohibited hotel proprietors in the state from placing religious reading materials of other religions other than Islam in their rooms. According to MAIP deputy president, Datuk Seri Wan Abdul Wahid Wan Hassan, a letter of prohibition on the matter had been sent to 147 hotels across the... …

  • Pre-lim report to ICAO not public, yet

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  • Take second job to tackle household debt, urges AKPK – Bernama
    Take second job to tackle household debt, urges AKPK – Bernama

    The Credit Counseling and Debt Management Agency (AKPK) has urged Malaysians to take a second job to help them tackle the high rate of household debt. Chief executive officer Koid Swee Lian (pic) said those in the teaching line, for example, could give extra classes to earn more money. "Teachers could earn more money by giving tuition to... …

  • International team probing MH370 to be finalised next week, Hishammuddin says
    International team probing MH370 to be finalised next week, Hishammuddin says

    KUALA LUMPUR, April 23 — Malaysia expects to finalise by next week the list of members on the independent team of experts commissioned by Putrajaya to carry out an extensive probe on the... …

  • Absolute power corrupts absolutely, Dr Mahathir reminds current leaders
    Absolute power corrupts absolutely, Dr Mahathir reminds current leaders

    Malaysian leaders have been reminded not to look down on the public’s capability to topple a corrupt government as what had happened in the Middle East during the Arab spring, warned Tun Dr Mahathir Mohamad (pic). In his latest blog posting today, the country’s longest serving prime minister said that monarchs and dictators in the Middle East... …

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, including Michael Kors (KORS), Buffalo Wild Wings (BWLD), Blue Nile (NILE), Cisco (CSCO), Zillow (Nasdaq:Z), Whole Foods (WFM), NVIDIA (NVDA), NetApp (NTAP), Deere (DE), and Abercrombie & Fitch (ANF).

Here is just a tiny sample of what BullMarket.com wrote about Buffalo Wild Wings:

Buffalo Wild Wings has beaten analyst EPS estimates five of eight quarters over the past two years, missing the consensus three times. During that span, the stock has risen the next session three of eight quarters. Seasonally, the stock has risen three times in the past four years. ...

Last quarter, the restaurant operator said that it earned $10.7 million, or 57 cents per share, for the period that ended September 23rd, which was down from $11.3 million, or 61 cents per share, in the same quarter last year. Higher costs for key ingredients like chicken wings cut into profits.

Wing costs rose in part because the poultry industry has gravitated towards growing bigger birds, driving up portion sizes and subsequently costs for BWW and other purveyors of chicken wings.

"High cost of sales and incremental preopening expenses moderated our bottom- line expansion," CEO Sally Smith said. "We're focused on adapting to current wing market conditions. Our restaurants have transitioned to larger size wings in response to the continuing shift in the poultry industry to larger bird production."

The company put through menu price increases in July and another in mid- August to compensate for the bigger wings and record high wing costs.

Revenue increased nearly 25% to $246.9 million from $197.8 million. Sales on a same-store basis grew by 6.2% at company-owned restaurants and 5.8% at franchised locations.

Wall Street analysts were looking for EPS of 61 cents on revenue of $254.2 million.

Management said that for the first four weeks of the fourth quarter, its same-store sales were up about 3.8% at company-owned restaurants and 5.6% at franchisees, compared to gains of 6.6% and 5.3%, respectively, during the first four weeks of Q4 2011. In the year-ago quarter, BWW posted same-store sales gains of 8.9% at company-owned locations and 5.9% at franchise locations. ...

Outside of earnings, Buffalo Wild Wings has been one of the fastest-growing full- service restaurant chains around. The company operates in a crowded space with a bevy of competitors, but we like the effort to expand beyond its Rust Belt core and its simple strategy of selling "wings, beer and sports." The concept still has plenty of room for growth in North America, as well as other locations around the world.

Meanwhile, the combination of menu price increases and the possibility of eventually switching to a per-pound pricing model over the original per-wing pricing should ease the pressure on margins. The company's solid balance sheet and cash flow characteristics should also enable it to keep funding its growth without adding leverage.

That said, elevated wing costs, aggressive price hikes, and McDonald's new "Mighty Wings" offering that is being tested, are all potential headwinds, at least in the near term. ...

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.
  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 104.9% from 2009-2012 versus a 57.9% return for the S&P, a 47.0% outperformance, topping the benchmark each year since the start of the Great Recession. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited.)

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    • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
      MH370 passenger’s partner tells of strange email from sacked Fox officer

      The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

    • The Poop on Pooping: 5 Misconceptions Explained LiveScience.com

      Here is the truth behind five common misconceptions about defecating. Misconception No. 1: Daily pooping is normal, and optimal. …

    • Dr Ling’s son chose wine over woman, court hears The Malaysian Insider
      Dr Ling’s son chose wine over woman, court hears

      The son of former MCA president Tun Dr Ling Liong Sik today reached an out of court settlement with his ex-girlfriend in a breach of contract suit over seven properties registered under their joint names. Ling Hee Leong and businesswoman Teh Chee Yen agreed to settle out of court after he took the stand briefly and testified that he had chosen... …