El: I think you're right that CPQ won't warn, but that could be good news or bad news.
What concerns me is that they might come in a little light on the revised lowered estimates. If that happens, then all of CPQ's posturing about how they never "warned," blah, blah, blah is going to work against them and they will be accused (and rightly so, IMO) of playing the semantics game with the Street. Even with positive forward looking guidance, CPQ's "word" will be suspect for a long time to come.
If they come in at revised estimates in the .29 - .30 area with decent forward comments, they should be OK, but I don't think the stock will make any big moves based on "relief."
If earnings and cc are better than that, it should break out to the upside.
It is obvious to me that if they were going to beat the earnings estimates, that they would have come with a press release to that effect to help buoy the stock, save credibility, and avoid more law suits.
You would think so, but CPQ management has already demonstrated its incredible lack of savvy when it comes to handling the Street. It has occurred to me that if they are going to beat estimates, they might be trying to "prove" something, thinking they'll make all those analysts who cut the numbers look stoopid. That would be an incredible mistake!!!! Nobody likes looking like a fool. For CPQ to put itself on the "wrong" side of the analyst community would be a disaster and, if that happens, CPQ management should be taken out and shot.
JMO,
K |
