Jamba Earnings: An Early Look

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Jamba (NASDAQ: JMBA  ) is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Jamba was a pioneer in the smoothie business, but lately, a bunch of much larger competitors have challenged the company on its own home turf. Let's take an early look at what's been happening with Jamba over the past quarter and what we're likely to see in its quarterly report on Tuesday.

Stats on Jamba

Analyst EPS Estimate

($0.11)

Year-Ago EPS

($0.15)

Revenue Estimate

$46 million

Change From Year-Ago Revenue

3.8%

Earnings Beats in Past 4 Quarters

1

Source: Yahoo! Finance.

Will Jamba satisfy investors this quarter?
Analysts have been rock-solid in their calls on Jamba over the past few months, not budging an inch either on the previous quarter or on full-year 2013 results. The stock, though, has done extremely well, rising 25% since late November on hopes for moves from Jamba to unlock shareholder value.

Jamba has made great steps forward recently. With a big promotional deal with the makers of the Twilight movies back in October, as well as efforts to put its Jamba2Go dispensers in school, the company is trying to do more business with school-age kids. It even targeted younger children with a kids' meal offering in January.

Jamba is also revamping its customer experience. The company introduced a new format that has limited menus but the potential for drive-thru service, and it's working with eBay's PayPal to offer smartphone-based payment through a PayPal app.

A big part of Jamba's share-price rise, though, likely comes from speculation that the company might get bought out. Starbucks (NASDAQ: SBUX  ) bought Evolution Fresh back in 2011, so it's not likely to be a buyer. Yet although fast-food giants McDonald's (NYSE: MCD  ) and Burger King (NYSE: BKW  ) have both come out with their own lines of smoothies as part of broader efforts to diversify their menu offerings, either one could benefit from potential growth from buying Jamba.

In its quarterly report, don't expect huge numbers in what's typically a seasonally weak time for the company. Instead, focus on future strategies for growth as well as early indications of how its recent initiatives are doing.

Would a McDonald's buyout of Jamba make sense? Get a broader picture of the Golden Arches by reading our premium research report on the stock, in which our analysts look at whether McDonald's can reverse its poor performance in 2012. The report comes with a free year's worth of updates, so click here now to get your copy right now.

Click here to add Jamba to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2289550, ~/Articles/ArticleHandler.aspx, 4/16/2014 6:52:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement