Recent IPO AuthenTec (Nasdaq: AUTH), a $430 million provider of fingerprint sensors and solutions, rose strongly after reporting strong earnings on Monday night with quarterly revenues rising 84% (from $8.2 million to $15.1 million) and quarterly earnings of 3 cents vs. a loss of 7 cents last year. They also raised forward guidance slightly.
When I do play an earnings mover, I never buy a stock the day after earnings, instead I like to see how the stock acts in the days afterwards because I think that gives everyone time to digest the numbers–kinda like not going swimming right after eating.
But now is where it gets a little tricky. With a forward Pe of 85 and an annual growth rate in the 40-50% range, it’s looking a little pricey here at $16.11. But, the stock just broke out to a new all-time high (even if it is a recent IPO, it’s still a nice little cup & handle), company insiders own a great many shares, they hinted at some recent product wins in their CC, their industry is hot, hot, hot, and add that to the fact that the company is speaking at no less than 4 analyst conferences in the next 2 weeks, I’m bullish here and I’d be even more bullish on any price weakness.
PS Look to see how competitor Synaptics (Nasdaq: SYNA)‘s earnings later today impact AUTH, if at all.
Disclosure: Timothy Sykes currently has no position, but this may change at any time.
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