When companies miss street estimates it could easily spell disaster, as was the case when Dell, Inc. (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 (AAPL) iPad and Amazon's (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 (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 (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.
