Analogic Corporation (ALOG) is set to report earnings after the market closes on Thursday, June 4th (ALOG earnings webcast). Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Automatic Explosives Detection, Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, and Advanced Signal Processing.
ALOG is expected to earn 36 cents for its 3rd quarter. We expect the Scientific & Technical Instruments company to announce earnings that will beat investors’ and analysts’ expectations; although this company has a spotty positive earnings surprise record. We are looking for a 4 cent surprise.
The company could have some pent up demand for its products. In the last quarterly conference call management mentioned that some of their customers were holding off on making decisions until the economy improves. They also felt the second half of the year could be better than the first 6 months. It appears analysts are on the same page as they expect ALOG’s earnings to grow more than 100% next year. Management’s forward guidance might be more important than its earnings.
Following earnings, ALOG’s stock usually swing both ways, up or down by more than 10%. Aggressive investors might just buy ALOG stock or the June 35 call option. With ALOG’s wild post earnings price performance, more cautious types might consider an option straddle using the June 35 call option and put option.
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