A positive earnings report is as good an indicator as any of an imminent spike in stock prices, and we've identified two firms whose upcoming fourth quarter earnings reports are likely to push their shares higher. Consider buying into these stocks before the release of the earnings reports to capitalize on their recent successes.
Green Dot Corporation (NYSE:GDOT)
Green Dot Corporation will release its fourth quarter earnings results on January 30. The firm, a leading provider of prepaid debit cards and services associated with the cards, generates revenues through fees associated with activating, reloading, and withdrawing from its cards. Green Dot continues to benefit from a surge of distrust and distaste for the American banking system in the aftermath of the 2008 financial crisis, and has marketed its products as alternatives to bank accounts, though the firm offers some basic banking functions as well. The firm now makes its products available at over 80,000 retailers and on the internet.
Green Dot made a major play in late 2013 to acquire Wal-Mart (NYSE:WMT)'s MoneyCard portfolio from GE Capital Retail Bank, allowing Green Dot to place Wal-Mart marks on its products and to make inroads with the big box giant's consumer base. Piper Jaffray recently reported that Green Dot's products have seen significant success at Wal-Mart, seemingly overcoming competition from American Express (NYSE:AXP)'s similar offerings; Piper continues to rate GDOT as Overweight.
Green Dot will hold a conference call to discuss its fourth quarter financial results at 5:00 p.m. EST on the 30th. Those interested in keeping a close eye on GDOT can access the call by dialing (877) 300-8521, or (412) 317-6026.
Arkansas Best Corporation (ABFS)
Arkansas Best Corporation will release its fourth quarter earnings report on January 30. Investors have every reason to expect success from the freight transportation and logistics solution firm, which has seen explosive stock performance over the course of the past year-the price of ABFS has grown over 200% since last January, having recovered from much-exaggerated predictions of collapse in 2012.
The firm's late October union agreement with the Teamsters included wage and benefit reductions that should allow the firm to claw its way towards profitability. The new agreement covers some 7,500 employees, most of them drivers. Arkansas Best estimates that the agreement will save the firm between $55 million and $65 million per year. The wage and benefit reductions did not go into effect until November 4, but they should still have effects on the firm's fourth quarter earnings and will certainly prove a boon to the firm moving forward.
Arkansas Best plans to release its earnings report before the market opens on January 30. The firm will hold a conference call to discuss the report on the morning of the 30th at 9:30 a.m. EST; interested parties can dial (800) 709-0218 to hear the call live, or can access a webcast of the call at www.arkbest.com/news/index.asp.
Disclosure: I am long ABFS, GDOT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.