Apparently, Briefing.com has the same opinion with you on EIDSY:
EIDOS PLC (EIDSY) 18 -1/8: Here, is your classic case of "buy the rumor, sell the fact." This morning, Europe's largest publisher of entertainment software reported blow-out earnings. Using yesterday's British pound/US dollar exchange rate, Eidos earned $1.78 a share for the 4th qtr. These results were almost double the Zacks earnings estimate of $0.91 (1 analyst surveyed). With the shares of U.S. game maker THQ (THQI 31 1/8 +1 5/8) having run almost 6 points yesterday, on what were, arguably, less impressive results, Eidos shareholders were expecting a big pop in price today. Obviously, that is not what they got. What happened? Andrea Williams is what happened. Earlier this week, the Volpe Whelan analyst reiterated her "strong buy" rating on Eidos. The move sparked a rally that pushed EIDSY up 11% ahead of the earnings report. What's more, along with the reiteration, Ms. Williams said she expected the company to beat her earnings estimate by 40 to 50 cents, on a $6-$10 million upside surprise in revenues. Although Eidos still managed to obliterate the "whisper number," Ms. Williams' pre-earnings comments stole the bang from the numbers. Today, the Eidos shareholders whom were not aware of the analyst's actions earlier this week, are left scratching their heads, wondering why THQ was able to make a move, while their stock has been a dud. Now that everyone knows why EIDSY fizzled out today, let's see how the company's numbers match up against those of THQ.
Fundamentals
FY98 Earnings Estimate: EIDSY= $1.23; THQI= $1.18 Price/Earnings Multiple: EIDSY= 14.63; THQI= 26.38 Long-term Growth Forecast: EIDSY= 25% per annum; THQI= 25% per annum Price/Earnings Growth Ratio (PEG): EIDSY= 0.58; THQI= 1.05
Conclusion: Based on the fundamentals, Eidos offers far more bang for the buck. If not for Ms. Williams' comments earlier this week and the fact that daytraders had to take the time to convert pence into dollars, this stock would have done extremely well today, particurly after THQI's showing yesterday. However, as a longer-term play, the numbers speak for themselves. |
