Earnings whispers abound, but you have to know how to read them. You have to learn to find the important information in them that can help you make money in the
stock market. In this article, we will discuss some of the key pieces of information to look for.
Whisper numbers are a common way of understanding stock price movements after a company announces earnings. If a company misses its whisper number, its shares will likely fall. However, if it surpasses it, stocks will likely rise.This information is often published on financial media websites, in blogs, and through social media chats. Analysts do not publish these numbers, but they are usually matched to the consensus estimates of the same analysts.
Whisper numbers may be more accurate than official estimates. However, they also can be wrong. It's important to look for more reliable sources of information. The WhisperNumber website, created by John Scherr, claims that its aggregated data from individual investors is more accurate than analyst consensus estimates. For example, in a recent Intel news, the whisper was 28 cents, while the official estimate was only 25 cents.
Another example is the Apple Inc. (AAPL) earnings report. Analysts expect the company to deliver a profit of $5 per share. But the stock has fallen 20% in the last six months. As a result, many investors are looking for a buying opportunity. In the last four quarters, the company has reported earnings that have exceeded its whisper number by forty cents. Traders are expecting the next quarter to be even better.
While analysts are confident in the Apple's earnings, some have questions about its holiday quarter guidance. They expect to see fewer iPhones sold in the first part of the year, and they do not know if the company will sell more in the fourth quarter. Analysts have expectations for the next two quarters, and they hope that the iPhone's sales will increase. When Apple releases its Q4 2022 earnings report on Thursday, Wall Street will be listening closely.
Calavo Growers (CVGW)
The latest earnings release from Calavo Growers (CVGW) is not a bad look on paper. The company reported a loss of $0.17 per share in its most recent quarter. Despite this tepid showing, this stock has a slew of positives, including an attractive yield of 9% and a Zacks Rank of a solid A. Combined with a nifty valuation ratio of 1.3x, this stock looks like a buy at this price point.
Not to snooze around, but it is time to put this company on your radar. Calavo has a long history of being a solid bet, and it appears the company is well positioned to fend off a few more quarters of sagging results. For the record, the company possesses a forward-looking business model, an impressive balance sheet, and a solid management team with a proven track record of execution. In other words, if this company can pull it off, it may have found its niche in the avocado industry. As such, it's a great time to get in on the ground floor before the competition comes out of hiding.
Although Calavo may not be the most impressive ooh la la, its stock can zigzag in lockstep with the latest quarterly reports. On the other hand, it is unlikely that the company will be able to keep up with its competitors in the highly competitive avocado business. To that end, it's best to play the odds. One of the smarter moves to make is to buy a small number of shares in the company at the cheapest possible price. Then, you can focus on diversifying your portfolio by picking up other ooh la ooh worthy stocks.
Toro (TTC) is one of the more popular companies in the outdoor equipment and irrigation sectors, providing solutions to customers across the globe. Specifically, the company offers products in three main categories: turf equipment, irrigation systems, and outdoor lighting. With a global presence in over 90 countries, the company has a reputation for quality and innovation.
As for the company's financial performance, it has delivered above-average results in each of the past three years. The company reported $1.33 in earnings above its whisper number in the previous quarter. While this is a small sample size, it does indicate that the company is on track to deliver “high quality” earnings in the near future.
In addition to delivering quality earnings, the company also boasts a high Earnings Quality Ranking. This is a measure of how well a company does compared to its peers in the industry. It is a useful way to gauge how much better a company's overall performance is compared to its competitors. Considering the fact that there are over 20,000 public companies in the U.S., it can be difficult to keep up with them all. However, MarketBeat provides real-time analyst ratings and an in-depth profile for over 20,000 public companies. A free account is also available, and subscribers receive a daily market update email newsletter and access to insider trading information.
While the company has done its share of impressive feats in the past, the stock has been able to pull off a more than average 2.4% move in the past three months, which is a big win for any company. The real winner here is the option traders, who are pricing in a 6.3% post-earnings rally.
Cintas Corporation (CTAS) is a publicly held company headquartered in Cincinnati, Ohio. The company provides a wide array of services, products and technologies to keep facilities clean and employees safe. In addition, it also helps one million businesses comply with a variety of safety regulations.
Its latest quarterly report includes record revenues, a record amount of cash distributed to shareholders and the highest quarterly dividend in company history. Also, it updated fiscal year 2023 guidance. The company also announced a new safety-related product and services program that could help keep employees and facilities safe. Despite the fact that the company is undergoing a significant transformation, it will remain a leader in its field.
The company's latest earnings report, which was released before the market opened on November 22, surpassed all of its EPS estimates by a wide margin. While the consensus EPS estimate was $3.03 per share, Cintas reported a better-than expected profit of $2.47. In the past year, the company has exceeded its EPS estimates four times. And the company paid an aggregate quarterly cash dividend of $117.3 million to its shareholders.
While there is no denying that the Cintas vs. its competitors triumvirate is a compelling case study, investors would do well to remember the small print, such as the fact that the company has been in business for just under a decade.
Fuelcell Energy (FCEL)
FuelCell Energy (FCEL) is an integrated fuel cell company that offers products and solutions to address the world's energy challenges. It operates highly efficient stationary fuel cell power plants that produce clean, sustainable electricity. The company's plants use domestic fuels like natural gas and renewable biogas to generate power twice as efficiently as conventional fossil fuel plants. They also produce virtually no air pollution.
FCEL provides energy to customers worldwide. Utilities and governments can benefit from the company's sustainable products and services. In addition to selling the company's ultra-clean stationary fuel cell power plants, it also develops and commercializes innovative fuel cell technology platforms. Currently, it is a leading global manufacturer of proprietary fuel cell technology platforms. In the fourth quarter of fiscal 2022, FCEL reported a loss of $0.11 per share on revenue of $39.2 million. Compared to the prior-year quarter, revenues increased 181%. This resulted from module sales to Korea Fuel Cell Co., Ltd., which generated product revenues of $24.0 million.
Management uses various non-GAAP measures to analyze the company's financialperformance. These include Adjusted EBITDA and EBITDA. These measures differ from the most commonly used GAAP measures, such as net income, because they exclude depreciation of property plant and equipment, finance expense, and the income tax effects of those items. Investors and securities analysts utilize these measures to assess the company's performance.
Although the numbers presented here may not be directly comparable to similarly titled measures used by other companies, they are useful in evaluating the company's performance and trends. If you want more details about the financial results for the company, you can read its earnings report guide. Remember, the earnings estimates may change before the company reports its actual results