“They’re doing more business in existing places and they’re opening new spots that are more profitable. That’s what I think the market is weighing.” In other words, he thinks the higher multiple may be warranted.
How will you know if the market embraces the valuation?
In the near-term trader Joe Terranova says watch $64.76, the 52-week high. If the stock stays above that level in Tuesday’s trade he’s consider it a bull sign.
Guy Adami is also optimistic. “At some point we hit the valuation wall – but I don’t think we’re there yet.”
Looking at the numbers a little more closely, the company earned $356 million, or 75 cents per share, for the quarter. That's compared to $274 million, or 56 cents per share, a year earlier. Revenue rose 15 percent to $4.1 billion.
Analysts expected profit of 74 cents per share on revenue of $4.04 billion
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Trader disclosure: On Feb 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long GOOG; Terranova is long JOY; Terranova is long TRLG; Terranova is long AXP; Terranova is long MUB; Terranova is long LQD; Terranova is long SBUX; Terranova is long CNX; Terranova is long SU; Terranova is long OXY; Terranova is long MA; Terranova is long MCD; Terranova is long SNDK; Terranova is long EMC; Terranova is long IBM; Terranova is long VRTS; Seymour is long AAPL; Seymour is long BAC; Seymour is long INTC; Seymour is long YHOO; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns NUE; Adami owns INTC; Adami owns BTU; Kelly is long TLT; Kelly is long SPY calls; Kelly is long SPY puts; Nations is long SPY; Nations is long BAC; Nations is long C
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