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 (JMBA +0.00%) 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 (SBUX 0.86%) bought Evolution Fresh back in 2011, so it's not likely to be a buyer. Yet although fast-food giants McDonald's (MCD 1.05%) and Burger King (BKW +0.00%) 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.
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