Thursday Morning Digest: 5 Stocks To Watch For Intraday Trading

by: Chandrasekhar Rajagopalan

There are at least five stocks that will have the potential to move either up or down on Thursday's normal trading. These companies have reported their September quarter results and some of them have also guided fourth quarter, which may be below or above expectations.

Enterprise level automation solution provider Ellie Mae (NYSEMKT:ELLI) has guided fourth quarter above consensus after its Q3 EPS topped Street analysts' expectations. The company earned a profit of $6.8 million or EPS of 25 cents, sharply higher than $2.7 million and EPS of 12 cents in the year-ago quarter. On an adjusted basis too, profit surged to $9.5 million or EPS of 35 cents from $$2.0 million or EPS of 9 cents in Q3 last year.

Total revenues jumped 87% to $27.5 million from $14.7 million in the previous year quarter. Analysts estimated the company to earn EPS of 21 cents.

Moving ahead, Elli Mae expects EPS of 5 to 7 cents and adjusted EPS of 18 to 19 cents, while seeing revenues of $27.5 to $28.0 million for the fourth quarter. This is higher than Street EPS predictions of 9 cents and revenues of $22.67 million. The company also sees growth prospects of 25% in the next year despite the current data pointing towards an estimated 19% drop in overall industry mortgage volume next year.

Another company, BMC Software (NASDAQ:BMC) reported earnings and confirmed fiscal 2012 EPS forecast. The company has earned a lower profit of $98 million or 61 cents EPS for the Q2 compared to $115 million or 65 cents EPS in the previous year. On a non-GAAP basis too, profit dipped to $141 million from $153 million. However, EPS rose by a cent to 88 cents from 87 cents in the year-ago quarter. Revenues slackened 1.5% to $548.2 million from $556.7 million in Q2 last year. The company's EPS came in line with Street expectations.

However, BMC continues to see adjusted EPS of $3.49 - $3.59 for fiscal 2013, while analysts' are expecting EPS of $3.49. The mid-point of the guidance is well above the Street expectations. The company's chairman and CEO Bob Beauchamp commented, "BMC Software is clearly making progress in capturing growth in important markets, and we are seeing positive trends in a number of key areas." He added, "Product development success and overall innovation remain high - we are very excited about yesterday's launch of BMC MyIT. Our ESM sales force has stabilized and is positioned for improved productivity. We remain highly profitable and financially strong." The company is also exploring a potential sale.

Meanwhile, Zumiez (NASDAQ:ZUMZ) has cut its Q3 EPS outlook to 38 - 39 cents from 42 - 45 cents after recording below than expected comparable store sales for October. Analysts currently estimate the company to report EPS of 53 cents for Q3. The company's COMPS for October were 0.6% growth, while analysts surveyed by Thomson Reuters predicted 4.6% uptick. However, the company's sales for October grew 20.2% to $41.9 million from $34.9 million in 2011. For the third quarter, the company's COMPS were 3.7% compared to 6.0% in the last year. The reduction in EPS forecast will likely have a downside bias on Thursday's trading.

One more stock likely to see downward trajectory is OpenText Corp. (NASDAQ:OTEX) as the company's revenue for the first quarter missed consensus though EPS topped estimates. The company reported profit of $19.43 million or EPS of 33 cents, down from $34.99 million or EPS of 60 cents in Q1 last year. On an adjusted basis EPS rose to $1.31 from $1.03. Revenues grew to $326.19 million from $288.05 million in the previous year. Wall Street analysts were expecting the company to earn EPS of $1.17 and revenues of $334 million. The stock was down over 7% after its results were announced in the after hours of trading on October 31.

Seagate Technology (NASDAQ:STX) will also likely to see downside pressure as its EPS and revenues fell shy of analysts' expectations. The company reported net earnings of $582 million or EPS of $1.42, up from $140 million or EPS of $1.40 in the year-ago quarter. On an adjusted basis, net earnings were $594 million or EPS of $1.45. Revenues grew to $3.73 billion from $2.81 billion in Q1 last year. Analysts surveyed by Thomson Reuters predicted the company to earn EPS of $1.67 and revenues of $3.75 billion. Seagate's revenues were lower than its own guidance of $4.0 billion. The outlook for hard disk makers also look sluggish as its peer Western Digital (NYSE:WDC) has earlier guided December quarter below the consensus.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.