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Ahead of Earnings – AAPL, BSX, STLD

 

 

October 18, 2009

 

BY Billy Fisher:

Contributor, Stock Traders Daily

Real Time Trading Reports:  Included are detailed trading reports designed to help investors realize opportunities in these companies as earnings are released.  The reports are linked to the stock symbols in the article below. Performance - Click Here

(La Jolla, CA)  After the closing bell on Monday, a few movers and shakers will report their quarterly results. Here is what to expect going into earnings.

Stratospheric Growth

When Apple (Nasdaq: AAPL) reports its fiscal Q4 results after the market close, analysts will be expecting the company to post a 12.7% spike in EPS on 16.6% gain in sales on a year-over-year basis. If recent quarters are of any indication of what’s to come, Apple will soundly surpass these results. In each of the past four quarters the company has notched double-digit surprises to the upside in comparison to estimates.

Shares of Apple sail into earnings sitting close to a 52-week high and up 120.3% on the year. Traders should pay attention to the growth of iPhone sales and the potential for cannibalization on the sale of iPods from iPhone users. In Q3, Apple sold 5.2 million iPhones which equated to 626% unit growth over the company’s year-ago quarter. Before pulling the trigger on an Apple trade, investors would benefit from reviewing our free AAPL trading report.  

Vital Signs

Analysts are also expecting positive growth out of the medical device company Boston Scientific (NYSE: BSX) when it reports its earnings. The consensus is that the company will check in with a 55.6% improvement in EPS on a 2.8% rise in sales versus the prior year Q3.

BSX is coming off of a favorable Q2 in which it hit the high end of the earnings guidance range provided by management. Sales from cardiac rhythm products, ICDs and drug-eluting stents were up 10%, 13% and 14% respectively, over the company’s Q2 in 2008. BSX is up 29.5% so far in 2009. Traders looking to bet on the company’s Q3 results prior to their release should review our free BSX trading report beforehand.

Nerves of Steel

With the price of commodities beginning to inch up and inflation fears lingering in the background, traders will look to Steel Dynamics (Nasdaq: STLD) after the market close for more visibility into the fate of the basic materials space. Analysts are expecting the company to report a 76.5% haircut on EPS accompanied by a 58.7% plunge in sales versus the company’s year-ago quarter.

In Q2, Steel Dynamics reported a net loss of $16 million as sales fell by 67% on a year-over-year basis. The company has been battling a tough macroeconomic environment for steel companies with volumes and selling values considerably lower than a year ago. For those traders who think this stock is primed to breakout, consider our free STLD trading report.

Looking to trade ahead of earnings? Check out dynamic real-time trading reports published by Stock Traders Daily CEO, Tom Kee Jr., with a Free Trial.

YTD 2009, Kee's Position Trades are up +56% on 4 trades.  

 

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