Showing posts with label Earnings Warning. Show all posts
Showing posts with label Earnings Warning. Show all posts

Views +1:Valuation, Timing & Margins Catch Up To Amazon.com (AMZN)

Amazon.com Inc. (NASDAQ: AMZN) has turned in earnings for its third quarter, and we will be paying extra attention to its fourth quarter.  The seller of everything online reported earnings of $0.14 EPS on sales of $10.88 billion, which compares to the Thomson Reuters targets of $0.24 EPS and $10.93 billion in sales.  Operating income was $79 million.

Amazon also guided the fourth quarter to come in at %16.45 to $18.65 billion in sales and it put the range for operating earnings at -$200 million to a profit of $250 million.  The Thomson Reuters estimates are $0.86 EPS and $18.05 billion in revenues.  As noted in the preview, the fourth quarter is Amazon’s “money quarter” as it includes Christmas and the holiday season sales.

We have been concerned each quarter about Amazon’s margins and its operating margins came in at 0.7%.  North American sales are currently about 20% larger than its international sales.  Even before the guidance, Amazon traded at more than 100-times expected 2011 earnings.   The big outlier was the new Kindle sales. 
The news may finally be catching up to Jeff Bezos and friends today.  Shares closed down 4.4% at $227.15 versus a recent all-time high of $246.71, but shares are down sharply and just under $194.00 as of about 4:17 PM EST.

We will hold off before tallying up all of the post-conference call judgment.  Bezos has had similar quarters before where the reception went from bad to good.  We do not believe that can happen forever and we believe that at some point investors will start to demand better margins and higher profits.  It is not exactly as if Amazon is an emerging online retailer....
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Views +1:NetFlix Shares Down 24% On Earnings


Wall St. slashed shares of NetFlix (NASDAQ: NFLX) has it missed all projections for revenue, earnings, and subscribers. The firm’s price decisions, which have alienated customers, may have permanently hurt the company. The poor judgement which included raising subscriber rates sharply,  comes as powerful competition from Amazon.com (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Hulu, and YouTube enter the market.

Third quarter earnings were up 63% to $1.16, which would have been an impressive improvement for any other company.

Netflix reported 21.45 million streaming subscriptions at the end of the third quarter and 13.9 million DVD subscribers. The company said total U.S. subscriber base by the end of its third quarter was 23.79 million—below expectations of roughly 24 million. Netflix lost 810,000 subscribers between the second and third quarters.

Netflix said it would miss Q4 forecasts as well.............


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Views +1: Top After-Hours Earnings Stocks on the Move (AXP, BWLD, CRUS, CBST, EBAY, ETFC, RVBD, WDC, WYNN) Read more: Top After-Hours Earnings Stocks on the Move (AXP, BWLD, CRUS, CBST, EBAY, ETFC, RVBD, WDC, WYNN)


24/7 Wall St. is tracking the after-hours earnings reports to see which stocks are on the move and which ones will be the key issues for Thursday morning. The top movers are as follows: American Express Company (NYSE: AXP); Buffalo Wild Wings Inc. (NASDAQ: BWLD); Cirrus Logic Inc. (NASDAQ: CRUS); Cubist Pharmaceuticals, Inc. (NASDAQ: CBST); eBay Inc. (NASDAQ: EBAY); E*TRADE FInancial Corporation (NASDAQ: ETFC); Riverbed Technology, Inc. (NASDAQ: RVBD); Western Digital Corporation (NYSE: WDC); and Wynn Resorts Ltd. (NASDAQ: WYNN). 
A brief summary of the news and the after-hours reaction is available on each below.
American Express Company (NYSE: AXP) beat earnings estimates at $1.03 EPS versus $0.95 estimates.  Shares were down 1.2% today and shares are currently down another 1.2% at $45.59 in the after-hours session.
Buffalo Wild Wings Inc. (NASDAQ: BWLD) beats earnings at $0.61 EPS versus $0.63 EPS estimate; revenues rose over 30%; it sees meeting a goal of 13% unit growth and 23% net earnings growth for 2011. The dining, beer, and sports destination also sees 2012 with 12% unit growth and net earnings growth of 20% in 2012.  Shares fell 0.8% on the day but the stock is up 3.3% at $59.81 in the after-hours session.
Cirrus Logic Inc. (NASDAQ: CRUS) beats earnings but guided next quarter below estimates as it is seeing softness in some areas of business due to global economic issues.  Shares were down 5.5% at $17.01 on the regular trading day and shares are down another 12% at $14.73 in after-hours.
Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) beat $200 million in sales for the quarter and shares are up almost 8% at $39.33 after closing down 1.75% today.
eBay Inc. (NASDAQ: EBAY) met its $0.48 EPS target and sees $0.55 to $0.58 EPS versus $0.58 EPS targets in Q4.  Shares were down 2% on the day and down another 4.3% at $31.83 in after-hours trading. 
E*TRADE FInancial Corporation (NASDAQ: ETFC) is now up after having been down.  It appears to have met the $0.16 estimate but revenues were light; shares closed down 2.6% on the day but are back up almost 2% at $9.52 in after-hours.  No word on any merger, again.
Riverbed Technology, Inc. (NASDAQ: RVBD) may be getting its mojo back… It beat earnings and guided higher.  After falling 2.8% on the day shares are up over 11% at $25.10 in the after-hours and the 52-week range is $12.57 to $44.70.
Western Digital Corporation (NYSE: WDC) was down 9% today on Thai flood concerns and shares are down another 2% at $24.00 in the after-hours session despite $1.01 EPS.  The floods could impact they key quarter ahead.
Wynn Resorts Ltd. (NASDAQ: WYNN) was down over 5% on its own today and now the high-end casino operator posted $1.05 EPS versus $1.15 estimates even though revenues were in line and up 29%.  Shares are down another 5.2% at $123.48................
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Views +1: CROCS Earnings: Now Back To Ugly Shoes (CROX) Read more: CROCS Earnings: Now Back To Ugly Shoes (CROX)


CROCS Inc. (NASDAQ: CROX) is one of the few retail apparel stocks which was up 100% from its 52-week low.  It had been a miraculous recovery stock earlier this year.  Call it the flame-out momentum apparel stock death of years past that witnessed a massive resurrection.  The emblem could have been a Phoenix rather than an alligator if you just look at the lows in January to the highs in July.
That was then, this is now…  Wall Street lives by a “what have you done for me lately and what will you do for me tomorrow” creed.  That creed is causing major pain in CROCS after the close.
The shoe (and apparel) maker reported that earnings were going to come in at $0.31 to $0.33 EPS on $273 to $275 million in sales.  The company had previously offered guidance of $0.40 EPS and $280 million in sales (by and large the consensus estimates.
CROCS went on record by saying that direct channel sales in outlets and kiosks were soft after having been strong in the spring and summer. That in turn drove down margins.
After a big move up and in the “what will you do for me tomorrow” scenario, CROCS has gone back from a hot stock trying to regain some glory to a company that makes ugly gardening and comfort shoes.
The after-hours is just as ugly as those garden shoes.  Shares are down a whopping 36% at $16.89 after closing down 1.2% at $26.64.  The 52-week trading range is $13.20 to $32.47.......
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