- Sales and earnings should show significant growth over Q1 2008
- Sequentially, sales and earnings should be lower than the Q4 blowout quarter due to seasonality.
- Recent increases in share price may indicate that the market anticipates a solid quarter.
Q1 performance should reinforce for investors that, although Q4 may have been a blow-out, the overall trend in business performance still shows sustained and substantial progress in both sales growth and earnings on an annualized basis. There is also a possibility that Q1 may catch some residual Q4 momentum . The question for investors may be whether Q1 results could support a further run-up in the share price, or if the stock price bases at current levels. Since it reported Q4 results on March 19th, the stock has shot up by 244% to yesterday's close of $1.72. Although there appears to be little chance that CX could report disappointing results for the quarter, analyst expectations have probably also increased significantly after its remarkable Q4 performance. The reaction to Thursday's results should be interesting, and trading volume could be high on Friday.
From a fundamental (long) perspective, CX offers some of the most measureable online advertising programs in the market ,which tends to shorten the discover-decide-buy process for consumers. Shortened sales cycles and pay-for-performance pricing is novel for marketers, and also tends to make them very happy repeat customers. Only recently has the Company began to attract some A-list marketers with relatively large budgets, so there is potentially significant scaling potential. Additionally, the Company is gathering, analysing, and leveraging some pretty unique buying data that could enhance future performance. Essentially, the long-term potential appears to be solid.Dial 888-892-3255 for the conference call at 4:30 on May 7th.
Disclosure: I own shares of CX.