Earnings season is a time when investors are under a constant attack. Company earnings, revenue and data points are reported and sometimes they come in below expectations. Sometimes they come in above expectations. What really interests professional investors is what is coming next, not what just happened.
Knowing this I scanned the list of companies that have reported earnings over the last few days and I want to highlight the ones that say good times are still ahead. They did this by guiding earnings or revenues higher. This should help their Zacks Rank, as the Rank is focused on the earnings estimates revisions.
True Blue (TBI) reported last night after the close and guided revenues to a range of $660M - $675M when the consensus was right around $608M. Higher revenues generally leads to higher earnings, and if there is any increase in margins, the impact on the bottom line could be significant. As I write this, TBI is a Zacks Rank #3 (Hold) yet it has value, growth and momentum style scores of "A." I would not be surprised to see the Zacks Rank for this stock increase in the coming days.
Beantown and Beyond
Boston Properties (BXP) is a Zacks Rank #3 (Hold) but not for long. The company missed the earnings and revenue estimates but guided next quarter and the full year higher. The style score for this stock isn't as good as TBI, but the raised outlook should drive analysts to adjust their models and increase estimates.
I'm Not Fabricating This
Fabrinet (FN) is a Zacks Rank #3 (Hold) and it just reported earnings and revenue that were ahead of Wall Street expectations. The making of optical networking equipment also guided higher. The company now sees revenues of between $240M - $244M when the consensus was calling for $216M.
This Is My Hearbeat Song
It was almost a year ago that I saw this stock surge and that made me do some homework on it. I saw just a few things that I like and I was a total cowboy and pulled the trigger on it. On January 28 of 2015 the stock reported earnings and traded in the low 50's, today it is in the 90's and just reported earnings again.
Abiomed (ABMD) and the Impella heart pump have had my blood racing for a long time. With the release today, I expect that heartbeat to continue as they beat the Zacks Consensus Estimate for the 6th straight quarter. They also topped revenue expectations over the same time span. Today, they guided revenues higher for next quarter and the next fiscal year.
The company raised their FY16 revenue guidance to $326M, up from the previous range of $305M-$315M. The consensus stood at $315M. That is really good to see, but wait, there is more! They also guided operation margins of "greater than 17%" and that is better than the previous guidance of 15% to 17%.
Beating the number, raising revenue guidance and guiding margins higher is just what aggressive growth investors are looking for. Put this all together and I would expect to see this stock see some dramatic multiple expansion.
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Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.