Earnings Predictions
for the
Week Beginning November 27, 2017

-- More, More, More! –


by Ian Harvey

November 27, 2017

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Last Week’s Successful Recommended Options Trades Results for:

“ARMCHAIR” MEMBERS

DATE TRADE GAIN
November 21, 2017 DE JAN 19 2018 140.000 CALL 102%

“CUT-TO-THE-CHASE” MEMBERS

DATE TRADE GAIN
November 20, 2017 ADI DEC 15 2017 95.000 CALL P.P: 83%
November 21, 2017 CRM DEC 15 2017 110.000 CALL P.P: 39%

“ALL INCLUSIVE” MEMBERS

DATE TRADE GAIN
November 20, 2017 ADI DEC 15 2017 95.000 CALL P.P: 83%
November 21, 2017 DE JAN 19 2018 140.000 CALL 102%
November 21, 2017 CRM DEC 15 2017 110.000 CALL P.P: 39%

Don’t miss out – check out further options trades recommended for the week ahead by becoming a member of Stock Options Made Easy.

A Look Back At Earnings Predictions for Week Beginning November 20, 2017              

Earnings Results for the Week Beginning November 20, 2017

DATE TRADE GAIN
November 20, 2017 URBN DEC 15 2017 28.000 CALL P.P: 56%
November 20, 2017 A DEC 15 2017 70.000 CALL P.P: 44%
November 20, 2017 PANW DEC 15 2017 150.000 CALL P.P: 84%
November 21, 2017 LOW DEC 15 2017 82.500 CALL P.P: 54%
November 21, 2017 CHS DEC 15 2017 8.000 CALL P.P: 56%

NOTE: P.P: – Potential Profit


Options Trades to Consider Based on Expected Earnings Reports:

Monday, November 27

Tech Data Corp (NASDAQ:TECD) – will report fiscal Quarter ending Oct 2017 results after the market closes. The consensus earnings estimate is $1.90 per share on revenue of $9.05 billion and the Earnings Whisper number is $1.93 per share.

The company's guidance was for earnings of $1.84 to $2.04 per share. Consensus estimates are for year-over-year earnings growth of 31.94% with revenue increasing by 39.44%.

Last quarter, the company delivered a negative earnings surprise of 15.53%. It has pulled off positive surprises in three of the trailing four quarters, with an average beat of 11.20%.

Short interest has decreased by 2.5% since the company's last earnings release while the stock has drifted higher by 3.8% from its open following the earnings release to be 2.6% below its 200 day moving average of $94.85.

Tech Data is well positioned to grow significantly based on increasing demand for data center systems, and cloud and mobility offerings in the long run. Additionally, the company's efforts to diversify into new domains are impressive.

Also, the company's diversified customer base in both North America and Europe is a positive. Meanwhile, Tech Data continues to strengthen its position in the small and medium-business (SMB) customer segment in several countries.

Acquisitions and strategic alliances have been an integral part of the company's growth strategy. In February 2017, Tech Data completed the acquisition of the Technology Solutions business from Avnet. The transaction has given Tech Data access to the Asia-Pacific region.

Year to date, shares of Tech Data have also outperformed the industry. While the stock was up 8.3%, the industry gained 7.5%.

Option trade to consider: Buy the TECD JAN 19 2018 95.000 CALL at approximately $3.90.


Tuesday, November 28

Tiffany & Co. (NYSE:TIF) – is expected to report its third-quarter numbers before the market opens, with the consensus calling for earnings of $0.77, but the Street has a slightly higher whisper number of $0.79 for the quarter. The stock has been trending sideways since March, but with a strong start to the year, shares have appreciated 20.6% on the year.

Notably, Tiffany has managed to surpass analysts’ expectations in the past six quarters despite witnessing lower tourist spending in the US (SPY). Lower diamond sourcing costs and a focus on cost and productivity savings helped the company report an improved bottom-line performance.

Also, increased wholesale diamond sales and continued demand in China (FXI) are expected to drive the company’s sales.

Tiffany’s sales are expected to benefit from the square footage expansion and growth in its e-commerce business. New design launches in the fashion jewelry category, supported by enhanced marketing, are expected to drive its top-line growth.

The company announced that it plans to open five or six stores in the Asia-Pacific region during the current fiscal year. The new stores will expand its distribution network and augment its sales growth. Tiffany expanded its bridal segment in Japan with a new bridal boutique near its key Ginza store in Tokyo, which is witnessing favorable trends.

As currency risk subsides, the company is projected to witness improving trends in its European sales. Consumer spending is expected to remain high in China, which should support its top-line performance. The company expects its sales to improve in the low single-digits in fiscal 2017.

Option trade to consider: Buy the TIF DEC 15 2017 95.000 CALL at approximately $2.00.  


Autodesk, Inc. (NASDAQ:ADSK) – the computer-aided design software specialist will post its results after the market closes. The consensus estimate is for a loss of $0.13 per share on revenue of $514.77 million and the Earnings Whisper number is ($0.11) per share. The company's guidance was for a loss of $0.16 to $0.12 per share on revenue of $505.00 million to $515.00 million. Consensus estimates are for year-over-year earnings growth of 50.00% with revenue increasing by 5.14%.

Shares are trouncing the market this year as the company shows off how a transition to cloud-based delivery can improve its business. Last quarter, for example, Autodesk gained 270,000 new customers in its subscription services, and the boost helped recurring revenue jump 94% to $784 million.

Recurring revenue is up to 91% of the sales base today, compared to 69% a year ago. That success has given management plenty of confidence in their 2017 sales forecast; as the company progresses toward its goal of boosting subscription numbers by as much as 675,000 users in fiscal 2018.

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

Option trade to consider: Buy the ADSK DEC 15 2017 130.000 CALL at approximately $4.75.


Wednesday, November 29

Semtech Corporation (NASDAQ:SMTC)  – this analog and mixed-signal semiconductor maker reports late Wednesday; with EPS up 32% to 49 cents, and revenue up 11% to $152 million.

SMTC is well positioned to see aggressive share price growth. SMTC's LoRa technology will become an industry staple within the internet of things. World-wide inter connectivity growth will drive growth within SMTC.

Semtech is well positioned within an industry experiencing rapid growth. Semtech has a major differentiator in its LoRa technology, which is expected to grow exponentially as the world becomes more connected than ever. The company has continued to make revenue additive acquisitions to reduce bottlenecks while maintaining debt levels consistent within the industry.

The win in the smartphone industry with a major North American company is significant because it shows that there is increasing demand for SMTC’s advanced protection products.

Also, the increasing connectivity of the world and the IoT will drive growth in the semiconductor industry as a whole, which will translate into growth for SMTC. Semtech’s positioning within the industry will drive growth even further due to the differentiation in some of their marquee products.

These factors among others will lead to price growth in the future.

BWS Financial analyst Hamed Khorsand initiated coverage of the shares of Semtech with a Buy rating and a $49 price target, suggesting nearly 30 percent upside from current levels.

Option trade to consider: Buy the SMTC DEC 15 2017 40.000 CALL at approximately $1.60.


Thursday, November 30

Ambarella Inc. (NASDAQ:AMBA) -- is scheduled to report after the close on Thursday, and EPS is expected to tumble 40.5% to 66 cents, as revenue drops 11% to $89 million. Those are dismal figures for a stock that still trades at 35 times earnings -- which is much higher than the industry average of 25 for semiconductor equipment makers.

The stock has stayed nearly flat for the year compared to a 45% gain for the Philadelphia Semiconductor Index.

The high-definition camera tech specialist is enduring slower sales growth as it deals with a surprising contraction in its drone market and stubbornly weak sports camera sales. Revenue rose by just 10% last quarter as gross profit margin declined. Ambarella executives are predicting lower sales through the rest of the year.

Ambarella's top customers all started shopping around for cheaper chipsets over the past year. Even GoPro cut Ambarella out of the loop and hired Japanese chipmaker Socionext to create a custom GP1 SoC for its new Hero 6 cameras.

AMBA has been the subject of a number of recent analyst reports…..

  • Dougherty & Co decreased their price objective on shares of Ambarella from $75.00 to $60.00 and set a “buy” rating for the company in a report on Friday, September 1st.
  • Stifel Nicolaus decreased their price objective on shares of Ambarella from $64.00 to $52.00 and set a “buy” rating for the company in a report on Friday, September 1st.
  • Canaccord Genuity decreased their price objective on shares of Ambarella from $72.00 to $58.00 and set a “buy” rating for the company in a report on Tuesday, September 5th.

Option trade to consider: Buy the AMBA DEC 15 2017 57.500 PUT at approximately $2.90.


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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