URGENT!! YOUR COMMENTS REQUESTED ON AFTER MARKET TRADING TODAY DURING CONFERENCE CALL ON Q1 REPORTING
I listened in to the Q1 financial report conference call today around 4:30pm this afternoon (after market close).
Prior to the call, I dug up some wall street analyst earning expectations from MSN (http://moneycentral.msn.com/investor/invsub/analyst/earnest.asp?Page=EarningsEstimates&Symbol=sirf) as follows:
7 analysts
non-gap EPS, high = 16 cents, low = 7 cents and average = 12 cents
estimated growth rate -27.7% (negative).
In the conference call, SIRF reported non-gap EPS of 21 cents vs 17 cents same quarter last year. In addition, SIRF also report better outlook for FY 2007:
Revenue to be $320M to $330M
better nongap revenue (67.19M),
better growth rate (29.4%)
better margin (37M or 55%),
better cash position ($170.21M), etc
WOW, what a performance. As you know, the 1st quarter for SIRF is a traditionally slowest season of the 4 quarters. The reported actual figures clearly indicated that SIRF beats the Wallstreet estimates by a lot.
But could you believe what I notice in the after hour trading? Those after hour trading programs, started from around 4:00PM or so (and during the conference call), brought the stock price down some 8 or 9% from the closing price of $28.63 to $25.95 and finially settled at $26 and some change when the afterhour market closed.
I thought I was mistakened. I went on to the SIRF site and downloaded the conference boardcast again and listened to it several times. I was pretty sure that I did not hear the numbers incorrectly. Could anyone tell me am I missing something here? Or were those who dumped the stock after hours made a mistake and confused the gap EPS of 5 cents with non-gap EPS of 21 cents and thought that the EPS was below expectation?
Based on the reported numbers and the CEO's outlooks, the company is clearly doing very well and beat the analysts estimate in Q1... that is even with the temporary Tom-Tom pull out and for the slowest quarter of the year. Why in the world people are dumping the stock after market?
Do you think the option expiration tomorrow has anything to do with this? So far, SIRF seems to be a very profitable trade tomorrow if we could do our homework together. What do you think? We all need to pull our knowledge together to tackle this before market open tomorrow!!!!!!!!!!!!!!!!!! |
