Earnings Predictions
for the
Week Beginning April 23, 2018

Moving On Up!

by Ian Harvey

April 21, 2018

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Moving On Up!

“RESULTS for EARNINGS PREDICTIONS”

DATE TRADE GAIN
March 26, 2018 RHT APRIL 20 2018 150.000 CALL P.P: 200%
March 27, 2018 RH APRIL 20 2018 80.000 CALL P.P: 158%
March 28, 2018 GME APRIL 20 2018 14.000 PUT P.P: 65%
March 28, 2018 WBA APRIL 20 2018 65.000 CALL P.P: 38%
March 29, 2018 STZ APRIL 20 2018 230.000 CALL P.P: 20%
April 03, 2018 PLAY APRIL 20 2018 40.000 PUT P.P: 42%
April 04, 2018 KMX APRIL 20 2018 60.000 PUT P.P: 19%
April 04, 2018 AYI APRIL 20 2018 135.000 PUT P.P: 247%
April 05, 2018 CONN APRIL 20 2018 35.000 CALL P.P: 48%
April 10, 2018 MSM MAY 18 2018 90.000 PUT P.P: 23%
April 11, 2018 BBBY MAY 18 2018 20.000 PUT P.P: 205%
April 12, 2018 DAL MAY 18 2018 52.500 PUT P.P: 26%
April 13, 2018 JPM MAY 18 2018 110.000 CALL P.P: 69%++
April 13, 2018 C MAY 18 2018 70.000 CALL P.P: 98%++
April 16, 2018 NFLX MAY 18 2018 320.000 CALL P.P: 54%++
April 18, 2018 AXP MAY 18 2018 95.000 CALL P.P: 270%++
April 20, 2018 CLF MAY 18 2018 7.000 CALL P.P: 130%++

NOTE: P.P: – Potential Profit

Options Trades to Consider Based on Expected Earnings Reports:

Monday, April 23

Alphabet Inc (NASDAQ:GOOGL) will report earnings after the market closes. And with shares of the internet search behemoth down around 8% since it last reported in early February, now's a great time to look at this options trade.

The consensus earnings estimate is $9.21 per share on revenue of $24.29 billion. The Earnings Whisper number is for $9.45 per share. Consensus estimates are for year-over-year earnings growth of 15.56% with revenue decreasing by 1.86%.

GOOGL has room for significant upside, and fundamentally, looks to be in position to do so.

During last quarter's call, Alphabet CFO Ruth Porat reminded shareholders that investments are being made in order to drive a "second wave of growth within Google over the medium and long term" -- namely, as Google fosters high-margin cloud business, acquires content for YouTube, and invests in its thriving "Made by Google" hardware products. As these highly profitable non-advertising businesses continue to gain steam, they will help Google take some of the pressure off of its core advertising business.

Google maintains a commanding market-share lead in online advertising through its massive Search, Chrome, Gmail, Maps, and Android products. As such, advertising will undoubtedly generate the vast majority of Alphabet's revenue and operating income once again this quarter.

Alphabet's other bets segment, which houses its smaller businesses with massive long-term potential, last year jumped a solid 49% year over year, to $1.2 billion, mostly from sales of Nest-connected home products, Fiber internet, and Verily life-sciences solutions.

The short term sell off appears overdone, and the stock should continue trending higher as long as the quarterly report is in-line or better than expected. Analysts have an average price target of $1,248.07 on the stock.

Option trade to consider: Buy the GOOGL
MAY 18 2018 1150.000 CALL at approximately $12.00.

Tuesday, April 24

Caterpillar Inc. (NYSE:CAT) will report earnings before the market opens. The consensus earnings estimate is for $2.11 per share on revenue of $11.58 billion. The Earnings Whisper number is $2.25 per share. Consensus estimates are for year-over-year earnings growth of 64.84% with revenue increasing by 17.90%.

Short interest has decreased by 27.3% since the company's last earnings release, and overall earnings estimates have been revised higher.

The mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts.

The company's share price has outperformed the industry in the past year. The shares gained 64.6%, ahead of the industry's growth of 12.8%.

Looking at the upbeat estimates for the both earnings and revenues for the first quarter, it seems likely that the company will deliver improved year-over-year earnings on both metrics. This is also supported by strong fourth-quarter projections for its segments - Machinery, Energy & Transportation which generates a major chunk of revenues and earnings.

Performance will be driven by its positive end markets namely construction, mining and energy.

Option trade to consider: Buy the CAT MAY 18 2018 155.000 CALL at approximately $4.50.

Wednesday, April 25

Facebook Inc. (NASDAQ:FB) will report earnings after the market closes. The consensus earnings estimate is for a $1.36 per share on revenue of $11.46 billion. The Earnings Whisper number is for $1.48 per share. Consensus estimates are for year-over-year earnings growth of 30.77% with revenue increasing by 42.68%.

Overall earnings estimates have been revised higher since the company's last earnings release.

Facebook has been under a great deal of scrutiny in the wake of its data scandal where 87 million Facebook users had their personal information compromised. The company’s CEO, Mark Zuckerberg, recently testified before Congress, and his performance was strong enough to bring a little confidence back into the stock which has trended higher since his appearance in front of U.S. lawmakers.

Of the 28 analysts who cover the stock, 22 rate it a “strong buy”, four rate it a “buy”, and two rate it a “hold”.

The stock's very cheap now, and if there's been no lasting impact, this is a bargain. FB has historically managed to post impressive consensus-topping numbers, and if it can do so once more, the stock will continue to move higher and erase some of its recent losses.

Option trade to consider: Buy the FB MAY 18 2018 170.000 CALL at approximately $4.80.

Thursday, April 26

Microsoft Corporation (NASDAQ:MSFT) will report earnings after the market closes. The consensus earnings estimate is $0.85 per share on revenue of $25.71 billion. The Earnings Whisper number is $0.91 per share. Consensus estimates are for year-over-year earnings growth of 16.44% with revenue increasing by 16.39%.

Overall earnings estimates have been revised higher since the company's last earnings release.

Microsoft has been a top performing stock over the last year, boosted by strong earnings growth and the company’s ability to be a leading force in cloud computing.

MSFT is expected to grow earnings by 10.9% during the current year, and by an average 11.0% over the next five years.

Microsoft has been shifting its business from desktop PC software to cloud computing infrastructure and applications. And, since Microsoft’s business model does not rely on advertising, or selling customer data, the stock has held up fine in the wake of Facebook’s recent problems, and the stock remains just shy of its all-time high.

The market is very bullish on the company, which has posted better than expected earnings and profits for the last three quarters.

Option trade to consider: Buy the MSFT MAY 18 2018 95.000 CALL at approximately $3.00.

Friday, April 27

Chevron Corporation (NYSE: CVX) will report earnings before the market opens. Analysts expect Chevron's EPS to rise 5% to $1.48 with revenue climbing 15% to $38.3 billion.

Its share price and operations declined significantly during the collapse in oil prices, but now as oil prices strengthen, its flexibility has allowed it to be further leveraged to the recovery. Improved cash flow and a commitment to dividend payout are leading to improved investor sentiment, pushing its share price higher.

CVX plans to strengthen its financials by continuing its exercise of cost reduction, capex optimization, and divestments. Going forward, CVX expects to improve its cash flows by focusing on its sturdy upstream and robust downstream portfolios. So, with CVX’s strategy in place and focus on integrated growth, Chevron (CVX) could witness steep growth in earnings in 2018. Also, in terms of debt, Chevron has lower debt in its capital structure compared to peers.

In April 2018, 23 analysts rated CVX. Of the total, 18 analysts (78%) have assigned a “buy” or “strong buy” ratings, five (22%) have assigned “hold” ratings, and none of the analysts have assigned a “sell” rating on the stock.

Recently, Wells Fargo raised its target price for Chevron from $138 per share to $153 per share. Similarly, Citigroup increased its target price on the stock from $125 per share to $133 per share. CVX’s mean target price of $137 per share implies a 15% gain from the current level.

Option trade to consider: Buy the CVX MAY 18 2018 125.000 CALL at approximately $1.70.

An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, get on board with the members of Stock Options Made Easy.

Our proven track record says it all!!


”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.


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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”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.





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