Monday After the Bell: Earnings from Annies Inc (BNNY) and More

As of this writing on February 8, the Dow Jones Industrial Average (INDEXDJX:.DJI) has closed at 13,992, very close to the key technical and psychological level of 14,000. Numerous analysts are commenting that the stock market has reached a so-called “triple top,” as the Dow Jones average reached an all-time high of 14,164 during October 2007.

In addition to reaching near-record levels on the Dow Jones index, the S&P 500 also reached record highs of 1527 during March 2000 and 1565 during October 2007. As of February 8, the S&P 500 closed at 1518, within fractional distance of the March 2000 high.

I’ll be watching for any signs of change in market sentiment during the coming week. I’m seeing some signs of froth in the market, as investors become cautious with the upcoming sequestration talks in Washington.

While I keep a careful eye on the broader market indices, here are three specific stories I’ll be following for earnings after the bell on Monday, February 11.

Annies Inc (NYSE:BNNY)
Monday, Feb. 11 after market close; EPS $0.15 / Revenue $36.60M

Annie’s manufactures and markets a variety of natural and organic foods. The Berkeley, CA headquartered company went public on March 28, 2012 with an IPO priced at $19.00 per share. Shares have zigged and zagged in Annie’s short history as a public company, reaching a high of $48.87 on September 19 before closing at $36.55 most recently on February 8.

The Wall Street community has been universally bullish on Annie’s since the IPO. Currently, the mean (average) price target lies at $42.71, and the highest price target on Wall Street is $52.00. Analysts at Credit Suisse met with company management in December and believe Annie’s has substantial room for growth. Following the stock’s 20% decline in recent months, the analysts believe the current market price is attractive for long-term investors.

On January 22, Annie’s announced a voluntary recall of its frozen pizza products in a press release on its website. The company states there is potential for fragments of metal wire mesh to be contained in the frozen pizza after it was discovered a metal mesh screen failed at a third-party flour mill. Shares have hardly reacted following the announcement, and analysts at both RBC Capital and JPMorgan advised that any weakness in the stock presents a buying opportunity. RBC believes the voluntary recall will likely be considered “old news” in a few months.

Revenue at Annie’s has grown 20% in the last year.

Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH)
Monday, Feb. 11 after market close; EPS $0.01 / Revenue $512.7M

The Miami, Florida based Norwegian Cruise Line recently completed an initial public offering on January 17 at $19.00 per share, and began trading on the NASDAQ exchange on January 18 in the $25.00 range. The initial range for the IPO was set for $16 – $18 per share, but the price increased due to strong demand.

Norwegian, valued at $5.6 billion as of February 8, joins larger competitors Carnival Corporation and Royal Caribbean Cruises on the public exchanges, both of which are also Miami-based.