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

  • Umno MP admits to Facebook photos of Karpal in death
    Umno MP admits to Facebook photos of Karpal in death

    KUALA LUMPUR, April 19 — Under-fire Umno lawmaker Datuk Nawawi Ahmad admitted today to uploading photos of slain DAP leader, Karpal Singh on the Internet using his smartphone. The Langkawi MP... …

  • We love you, Tiger of Jelutong, grandchildren bid Karpal farewell
    We love you, Tiger of Jelutong, grandchildren bid Karpal farewell

    The late Bukit Gelugor MP Karpal Singh was given a moving tribute and farewell by his grandchildren tonight, who vowed to take up the mantle of Tiger of Jelutong. The 11 grandchildren, aged between 1½ years and 11, showed the media a poster which they had made together. "Singh is King. We love you, Tiger of Jelutong. We will miss you. Jangan... …

  • ‘I’ll be the next Tiger of Jelutong’, says Karpal’s eldest grandson
    ‘I’ll be the next Tiger of Jelutong’, says Karpal’s eldest grandson

    GEORGE TOWN, April 19 — In a sign that Karpal Singh’s legacy will not be forgotten, his eldest grandson pledged today to become as fearless and dedicated a lawyer his late grandfather once was.... …

  • More seats will check gerrymandering, says opposition
    More seats will check gerrymandering, says opposition

    While Pakatan Rakyat supports the creation of more parliamentary seats in the next redelineation exercise as a means to check malapportionment, academics and non-governmental organisations have warned that it will not necessarily improve the quality of elected representatives. PAS election director Dr Mohd Hatta Ramli said the opposition pact... …

  • Learner drivers can take test in auto cars from June – Bernama

    The Road Transport Department (RTD) will allow learner drivers to be tested in automatic transmission vehicles starting in June. Deputy director-general of RTD Datuk Yusoff Ayob said there had been delays in implementing the move because of technical problems involving the printing of the driving education curriculum. "The printing of the... …

  • In Karpal, slain Beng Hock’s kin saw a beacon of hope
    In Karpal, slain Beng Hock’s kin saw a beacon of hope

    GEORGE TOWN, April 19 — The house at Number 144A Jalan Utama has seen a ceaseless stream of visitors since morning. They came from all walks of life, mostly in groups, sometimes alone to offer... …

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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    • Langkawi MP unrepentant, continues insults on late Karpal, says Facebook user The Malaysian Insider
      Langkawi MP unrepentant, continues insults on late Karpal, says Facebook user

      A Barisan Nasional MP whose Facebook posting poking fun at the death of Karpal Singh shocked Malaysians has again insulted the late DAP leader, this time comparing him to a hostile figure in Islamic history who fought against Prophet Muhammad. Facebook user Shamsul Kamal Ariffin Mohd Nasir, 42, told The Malaysian Insider that Langkawi MP,... …

    • Karpal’s car crashed into lorry, not the other way around, says Perak police The Malaysian Insider
      Karpal’s car crashed into lorry, not the other way around, says Perak police

      Initial investigations have revealed that Karpal Singh’s Toyota Alphard crashed into a five-ton lorry in the accident yesterday that claimed his life and that of his assistant, Perak police said today. State police chief Datuk Acryl Sani Abdullah Sani also dismissed rumours and speculation that the accident was caused by the lorry crashing... …

    • Interfaith group ‘worried’ that ex-judge can have such ‘racist’ views The Malay Mail Online
      Interfaith group ‘worried’ that ex-judge can have such ‘racist’ views

      KUALA LUMPUR, April 19 — An interfaith group expressed shock today at the “racist” views of a former high-ranking judge who had called the presence of large Hindu and Buddhist statues in the... …