Options Trade – Chicago Bridge & Iron Company N.V. (NYSE:CBI) Calls  Monday, July 28, 2014

**OPTIONS TRADE: Buy the CBI Oct 2014 65.000 call (CBI141018C00065000) at or under $2.85, good for the day. Place a protective stop limit at $0.90 and a pre-determined sell at $5.50.

by Ian Harvey

July 28, 2014

Introduction

Chicago Bridge & Iron Company N.V. (NYSE: CBI), an energy infrastructure focused company and provider of government services, announced its earnings results on Thursday, last week. The company reported $1.36 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.28 by $0.08. The company had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.29 billion. During the same quarter last year, the company posted $1.04 earnings per share. Chicago Bridge & Iron Company’s revenue was up 15.6% compared to the same quarter last year.

"I am pleased to report CB&I had another strong quarter - strategically, operationally and financially," said Philip K. Asherman, President and Chief Executive Officer. "Our unique business model which provides our clients a more complete supply chain solution allowed us to maximize our competitive position within the global energy infrastructure market. New awards through the first half of the year totaled over $10 billion, resulting in a record backlog of nearly $32 billion. Our employees working on our global projects and in shops, labs and engineering offices performed more than 42 million work hours in the quarter and with one of the best safety records in our industry. We continued to advance major project key milestones at levels that delivered growth in revenue and income from operations. Revenue was up 16 percent from the second quarter 2013 and adjusted income from operations was $270 million, up 38 percent from the comparable period last year.”

"We remain confident in our ability to deliver revenue and earnings growth consistent with our expectations for 2014 and convert new awards activity into long-term earnings growth,"
continued Asherman.

However, after this good earnings report, Friday saw CBI share price pull back dramatically….. which is great for this recommended options trade!

Progress Achieved

Noteworthy awards in the quarter included a combined-cycle gas turbine power station in the U.S.; technology license and FEED scope for a world-scale ethane cracker in the U.S. and a refinery in Russia; significant maintenance, modification and construction awards for U.S. nuclear power units; long-term maintenance and operations at multiple chemicals facilities throughout the U.S.; storage spheres for a grassroots refinery in Saudi Arabia; storage for an ammonia plant expansion in the U.S.; delayed coking, hydrocracking, crude and vacuum heaters in Oman; operations and services work for the U.S. EPA; as well as numerous strategic technology, environmental and pipe fabrication awards around the world.

Analysts Opinions

Analysts at Barclays reiterated an “outperform” rating on shares of Chicago Bridge & Iron Company in a research note on Friday. They now have a $87.00 price target on the stock, down previously from $93.00.

The company has been the subject of a number of other research reports:-

• On the ratings front, analysts at Wells Fargo & Co. initiated coverage on shares of Chicago Bridge & Iron Company in a research note on Tuesday. They set a “market perform” rating on the stock.

• Analysts at Johnson Rice upgraded shares of Chicago Bridge & Iron Company from an “overweight” rating to a “focus list” rating in a research note on Tuesday, July 15th.

• Separately, analysts at Davidson upgraded shares of Chicago Bridge & Iron Company to a “buy” rating in a research note on Thursday, June 19th.

• Finally, analysts at DA Davidson upgraded shares of Chicago Bridge & Iron Company from a “neutral” rating to a “buy” rating in a research note on Wednesday, June 18th. They now have a $90.00 price target on the stock.

One research analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $86.64.

Conclusion

Therefore, based on the facts above the following options trade is recommended…..


**OPTIONS TRADE: Buy the CBI Oct 2014 65.000 call (CBI141018C00065000) at or under $2.85, good for the day. Place a protective stop limit at $0.90 and a pre-determined sell at $5.50.



”Success is simple. Do what's right, the right way, at the right time.”


Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page

Back to Option Trades from Options Trade – Chicago Bridge & Iron Company N.V. (NYSE:CBI) Calls - Monday, July 28, 2014




Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.




Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter