{"id":90,"date":"2005-07-26T06:15:49","date_gmt":"2005-07-26T11:15:49","guid":{"rendered":"http:\/\/www.selfinvestors.com\/tradingstocks\/?p=90"},"modified":"2018-08-11T21:40:29","modified_gmt":"2018-08-12T02:40:29","slug":"notable-earnings-july-26th-before-the-bell","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/company-earnings\/notable-earnings-july-26th-before-the-bell\/","title":{"rendered":"Notable Earnings: July 26th, Before the Bell"},"content":{"rendered":"

Good morning- today and tomorrow will be very busy days for earnings (about 10% of my database will report each day).  The 3 highest rated companies (all with scores of 50\/out of 60) reporting this morning include Chicago Mercantile Exchange (CME),<\/strong> Building Materials Holding (BMHC),<\/strong> and The St. Joe Company (JOE)<\/strong>.<\/p>\n

As the popular of futures and options trading explodes, CME continues to benefit big time.  After losing money in ’01, the company has been on a torrid pace and that growth accelerated in ’04 with a 77% increase in earnings.  ’05 is also expected to be a solid year with 37% earnings growth.  Its a company with no debt and rising margins & ROE.  This morning the company is reporting net income of 2.36\/share, a 44% increase over the year ago quarter, but missed estimates of 2.38 a share.  Revenue came in at 239 mill, good for a 60% increase, but again just missing analysts estimates.  Great results again, but if you’re a company with a high flying stock and you miss estimates, you’ll get hammered.  While a 4% drop isn’t exactly considered hammered (down in premarket), that may just be the beginning.  Areas of support to look for would include 270 (filling the gap) and 260 (support of the 50 day moving average).<\/p>\n

As a leading supplier to the homebuilders, it’s no wonder that Building Materials Holdings doubled profits in ’04, with the company expected to come close to that gain in ’05. It’s reflected in the stock with a more than 4 fold increase from last year, trending along the 50 day moving average the entire time.  Yes, the stock is long overdue for a significant correction and base formation, but it looks like that will have to wait for now.  The company smashed estimates this quarter of 1.85\/share by posting 2.28\/share, good for a 148% increase over last year.  Sales rose 29% to 702 million, beating estimates of 690 million.  The stock is up nearly 6% premarket and continues to climb and will break through the top of that long term channel.  Hmm… may be a good time to take profits off the table on this one if you have them.<\/p>\n