SAIC, Inc. (SAI), Bazaarvoice Inc (BV), VeriFone Systems Inc (PAY), Hovnanian Enterprises, Inc. (HOV), Ciena Corporation (CIEN): 5 Reasons to Worry About Next Week

Hovnanian Enterprises, Inc. (NYSE:HOV) is a homebuilder, and if you caught the S&P/Case-Shiller report that I singled out earlier — showing that home prices have staged their largest year-over-year advance since April 2006 — you would think that Hovnanian Enterprises, Inc. (NYSE:HOV) is rolling in money. Well, not every developer is thriving the same way. Yes, analysts do see a 20% uptick in revenue at Hovnanian Enterprises, Inc. (NYSE:HOV). However, those same Wall Streeters see Hovnanian Enterprises, Inc. (NYSE:HOV) reversing its year-ago profit with a small loss this time around.

Finally, we have Ciena Corporation (NASDAQ:CIEN). The networking solutions provider is in the same boat as Hovnanian Enterprises, Inc. (NYSE:HOV), pegged to post a small loss this quarter after cranking out a modest profit during the same period last year. Ciena Corporation (NASDAQ:CIEN) has actually come up short on the bottom line in two of the past three quarters, so it probably wouldn’t be a surprise if it delivered a larger loss than the $0.01-a-share consensus.

Why the long face, short-seller?
These companies have seen better days. The market has rewarded many of these stocks with reasonable gains over the past year, but they still haven’t earned those upticks. Lower earnings translates into higher earnings multiples, and nobody wants to see that happen.

The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. In other words, the bad news is already baked into the shares.

The more I think about it, the less worried I become.

The article 5 Reasons to Worry About Next Week originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.