Earnings Season starts with mixed results
A few comments on ASPN, CALX, GSHD, and TRNS
Due to the nature of the companies I tend to follow (i.e. they tend to be at least somewhat crappy and prone to reporting rather late in the earnings cycle) I find myself much busier slogging through earnings releases, transcripts, and, should they be available, 10Q’s and 10K’s, at the end of the filing deadline rather than, say, about now, which is still fairly early in the cycle.
However, a few of the names I follow have businesses of the more real variety, and have already managed to announce results for the September quarter end, so I thought some sort of an update on “how things are going so far” would be in order.
In my mind at least, nothing any of the companies I am going to mention had anything momentous to say, namely ASPN, CALX, GSHD, and TRNS, so my comments will be longer on a couple of the names and quite brief on at least one. The ASPN comment is actually more regarding the shenanigans surrounding their related party transactions than about their earnings preannouncement, but that one may be worthy of a follow-up once the real numbers arrive.
The market’s animal spirits in general continue to dominate the overall mood, and with the added bonus of positioning happening heading into a fairly divided presidential election (that positioning depending upon who you believe will be the ultimate victor). Put those all together and investors just want to believe that the best is yet to come.
With that said, I made some comments regarding a few companies I follow during my Q3 review, and how despite many of my names missing analyst estimates, guiding future estimates lower, and having a rather tough time holding margins together, the stocks nevertheless headed higher. If you choose to dabble on this side of the market, it’s just one of those things you have to be prepared to weather.
So let’s take a look at some of the earnings that has been reported so far.