Priceline, Nvidia before earnings
What to expect from the results of these 2 companies.
However, the share-price action after the results are released is not always correlated with the meet-or-beat comparisons that the Street often considers a gauge of success.
First, Priceline's earnings trend has been very cyclical. Every year, earnings have peaked in the third quarter and bottomed in the first quarter. Therefore, our observations tell us to expect earnings to be lower in this reporting cycle than they were in the previous quarter. But if history repeats itself, the following two quarters are likely to be quite strong.
The guidance for Priceline will be key because analysts will want to know what the company expects in the following two quarters, which is when the company shines, and they will reasonably discount the results from this quarter, which is the worst on average annually for the company. Therefore, forward expectations are incredibly important this time. Analysts will need to see forward guidance for second quarter well above $7.85 per share.
As for Nvidia, the company has started to make progress again beginning in the first quarter of 2012 after experiencing quite a terrible previous few years. Unfortunately, the company has a history of experiencing a series of quarters of revenue declines in a row. This has happened a few times already, and the third quarter of 2012 seems to have been a peak in revenues as well. The fourth quarter results were already lower than the third quarter, and that means this quarter's results could easily be below the previous quarter.
Based on our observations of historical patterns for earnings and revenue at Nvidia's, we expect them to contract again this quarter. Nvidia could also experience flatline revenue growth for the year. The patterns here are more sporadic than cyclical, and that is a concern.
A more accurate assessment of price action is better covered in the real time trading reports for these companies, which are also provided by Stock Traders Daily.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The stock has soared 76% over the last 2 years and is testing long-term resistance levels.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.