When companies miss street estimates it could easily spell disaster, as was the case when Dell, Inc. (NASDAQ:DELL) miss their Q1 estimates by $0.03/share. The major catalysts in the case of Dell was the fact the PC user market is shrinking as tablets such as Apple's (NASDAQ:AAPL) iPad and Amazon's (NASDAQ:AMZN) Kindle Fire grab critical market share. After Dell's miss, the stock fell nearly 20% in the short term creating a great buying opportunity for potential long term investors. That being said, these two companies recently reported earnings that fell short of analysts' expectations but after what could be a multi-session sell-off could have the potential to strive.
Cooper Companies (NYSE:COO) - Founded in 1980, and based in Pleasanton, California, COO currently trades in a 52-week range of $52.60/share (52-week low) and $89.31/share (52-week high). The Company reported second quarter earnings which missed street estimates by $0.08/share and net income of $1.12/share on revenue of $344.6 million dollars which also fell short by roughly $6 million dollars. After hours trading sent the stock down nearly 5%, and I think potential investors could see a great opportunity if the share price falls below $72.00/share, which is roughly a 10% drop from Thursday's close.
Agilysys (NASDAQ:AGYS) - Founded in 1963, and based in Solon, Ohio, AGYS currently trades in a 52-week range of $6.50/share (52-week low) and $10.00/share (52-week high). The disappointing fourth quarter AGYS reported on June 7th could send the stock down even farther on Friday. The company missed EPS estimates by $0.12/share even though revenue came in better than expected. The street was expecting AGYS to post a loss of -$0.05/share when in fact they posted a -$0.17/share loss on revenue of $52 million dollars. If the stock falls below $6.75/share (which would represent a 10.3% drop in price from Thursday's close), a buying opportunity for potential shareholders could occur. The company noted two key things during their Q4 earnings announcement, an 11% increase in revenue and positive guidance for the coming fiscal year.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.