Earnings are your friend…most of the time.

So I woke up this morning, knowing that LULU was releasing its earnings.  Hoping for a nice jump, but alas, looks like we will be stopped out as it gaps way down due to disappointing sales results.  The company still did well, just not as well as the street expected.

When I look to invest in a stock, they must have positive surprises in their earnings results over the last 4 quarters at least, LULU was no exception.  It had previously surprised analysts by +38.5%, +10.3%, +15.80% and +13% in the last 4 quarters.  So it just goes to show, that even with the best fundamental research on a company, we have no way of telling what it will report each quarter.  However, strong fundamentals and historic growth is the only way to balance things in your favour over time.  I previously got a huge pop on QCOR, so I mustn’t grumble…

ULTA is next for earnings after the bell today….fingers crossed!

May today be a profitable day…for all of us.

John