May. 13 at 11:40 PM
$JVA second q results out in four weeks, and they will be a barn burner. Sales could pop 10% YoY from
$23,320,061 to
$25,652,065 while gross profit margin might increase more than 500 basis points from 18.94% to 24%. Selling and general expenses could fall from 15.13% of sales to 14.50% of sales. As a consequence, operating earnings could nearly triple from
$888,617 to
$2,436,947. Earnings per share could almost double from 11 cents to 20 cents. We shall see, but so far, the share price hasn't priced in a decent quarter yet. In fact, the recent share price is signaling a rather weak quarter ahead. If that occurs, it won't represent a setback for the stock price as it seems to be already priced in and then some. The point is no one has the bought the rumor in anticipation of selling into the good news.
