There are seven stocks that could see either upward or downward trajectory following the announcement of their quarterly results. The company's results and outlook have either topped consensus or came in below expectation triggering movement.
These seven stocks have witnessed hectic activities in the after hours of trading on Thursday. For instance, TripAdvisor (TRIP) advanced 17%, followed by Priceline.com (PCLN) by 9%. LinkedIn (LNKD) and Starbucks (SBUX) have also gained 8% each following their robust September quarter results.
On the downside, ActiveNetwork (ACTV) was the major loser with over a 25% drop. Guess (GES) AND First Solar (FSLR) witnessed 7% and 5% respectively in the extended hours trading on Thursday. These effects will likely to be reflected in Friday's trading too.
Starbucks announced results for the fourth quarter that topped estimates and raised its fiscal 2013 forecast. Aside from this, the company also lifted its dividend. These are likely to ignite fresh demand for the stock. The company announced net earnings of $359.0 million or EPS of 46 cents versus $358.5 million or EPS of 46 cents in the year-ago quarter. On an adjusted basis, EPS increased 24% to 46 cents from 37 cents. Revenues grew 11% to $3.36 billion from $3.03 billion in the previous year. Both EPS and revenues were above Street expectations of 45 cents and $3.38 billion respectively. Starbucks fourth quarter results benefited from worldwide comparable store sales growth of 6% helped by a 5% traffic increase and a 1% average ticket growth.
Moving ahead, the company backed its revenue growth of about 10% - 13% for fiscal 2013. However, Starbucks lifted its EPS forecast to $2.06 - $2.15 from $2.04 - $2.14 predicted earlier. Street analysts are expecting the company to earn EPS of $2.13 and revenue growth of 11.5%. The company also bumped up its dividend by 24%. The stock advanced 8% in the extended hours of trading on Thursday after the results and outlook announcement.
Priceline.com is another company to watch out for an upward movement in Friday's trading. The company's third quarter results came in above expectations and the guidance for Q4 is in line with predictions. Priceline.com reported net income of $597 million or EPS of $11.66 for the third quarter, up from $469 million or EPS of $9.17 in the last year. On an adjusted basis too, profit increased 24.5% to $638.24 million or EPS $12.4 from $512.55 million or EPS of $9.95 in the year-ago quarter. Revenues grew 17.4% to $1.71 billion from $1.45 billion in the previous year. This is better than analysts' EPS expectations of $11.81 and revenues of $1.65 billion. The company's results gained from the better than expected results of some key European market.
For the fourth quarter, Priceline.com sees adjusted EPS of $6.12 - $6.57 and revenue growth of 15% - 22%. Analysts estimate the company to earn $6.34 and revenue growth of 15.3%. The company has consistently delivered better than expected results in the preceding four quarters.
Meanwhile, TripAdvisor is also likely to see an uptick in Friday's trading following their adjusted EPS and revenues topping estimates. The stock advanced about 17% in the extended hours of trading on Thursday. The company earned profits of $59.4 million and EPS 41 cents for Q3, while adjusted net income was $65.8 million or EPS 46 cents on revenues of $212.7 million. While revenues grew 18%, profit advanced 12%. Both adjusted EPS and revenues were above analysts' expectations of 42 cents and $211.3 million respectively. The company's president and CEO commented, "TripAdvisor's record third quarter financial performance, put us squarely on track to meet our 2012 objectives."
Close on the heels of Facebook's (FB) better than predicted results; LinkedIn followed it with strong Q3 numbers. Net income for Q3 was $2.3 million or EPS 2 cents compared to a loss of $1.6 million last year. On an adjusted basis, profit jumped to $25.1 million or EPS 22 cents from $6.6 million or EPS 6 cents in the year-ago quarter. Revenues climbed 80.7% to $252.03 million from $139.48 million. The results were more than analysts' expectations of 12 cents EPS and $243.9 million revenues. The company guided Q4 revenues of $270 - $275 million, while analysts are expecting $272.27 million. LinkedIn expects to close the year on a strong note both with its engagement and monetization platforms.
On the likely downward trajectory, there are three stocks to be watched. Active Network shares dropped over 25% in the after hours trading on Thursday after its outlook failed to meet expectations. The company's net loss widened to $6.0 million in Q3 from $1.4 million last year. On an adjusted basis, net income was $3.18 million or EPS 5 cents versus $3.26 million or EPS 5 cents in the previous year. Total non-GAAP revenues increased 24% to $111.81 million from $89.81 million. Analysts predicted Active Network to earn 5 cents a share and revenues of $110.4 million.
Guess is another company that saw over 7% fall in the extended hours trading on Thursday following the management changes. The company's COO Michael Prince and CFO Dennis Secor have resigned to pursue other interests. The company is not planning to find replacements for them immediately.
First Solar is the third company to be watched for downside risks. The company's net sales dipped 16.5% to $839.15 million in the third quarter from $1.01 billion in the prior year. Net income was $87.92 million or EPS $1.00, down from $196.5 million or EPS $2.25 last year. Adjusted profit for the third quarter was $111.53 million or EPS $1.27. While analysts EPS prediction was $1.04, revenue estimation was $966.5 million.
Going forward, the company has cut its revenue outlook for 2012 to $3.5 - $3.8 billion from $3.6 - $3.9 billion. However, First Solar lifted the bottom end of its adjusted EPS forecast to $4.40 - $4.70 from $4.20 - $4.70. Street Analysts expect the company to report EPS of $4.43 and revenues of $3.72 billion. The stock witnessed more than 6% fall in the after hours trading on Thursday.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.