The company is expected to report earnings of $0.77 per share on $8.14 billion in revenue. Meanwhile, the so-called Whisper number is a profit of $0.75/share. The Whisper Number is the unofficial take on the street’s revenue.
A closer look at the basics:
The company’s revenues have slowed significantly in recent quarters, which is not an ideal sign. Investors are looking for a bullish catalyst to push the stock higher. The company had to contend with labor problems and a very strong US dollar (damaging international numbers) in the quarter. It will be interesting to see how the company fared last quarter in light of all these headwinds.
A closer look at the technique:
Technically, the stock recently collapsed during the big sell-off on Wall Street. The stock is down more than 45% from its 52-week high, depressing valuation significantly. The lower valuation could attract value investors looking for a bargain. The stock is not yet considered cheap, but it is much “cheaper” than where it was a few months ago.
Pay attention to how the stock reacts to the news:
From where I sit, the main trait I look for during earnings season is how the market and a specific company react to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: the share is included in the FindLeadingStocks.com report.