Five Below Inc. (NASDAQ:FIVE) Option Calls
Provides 134% Potential Profit!
And More To Come!
by Ian Harvey
December 01, 2017
Five Below Inc. (NASDAQ:FIVE)
Here is an update of Five Below winning options call trade after reporting earnings. This options trade was recommended to “Cut-to-the-Chase” & “All-Inclusive” Trader Members of Stock Options Made Easy, on Wednesday, November 29, 2017 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, November 27, 2017”-- producing excellent profits of 134% within 48 hours of executing the trade!
Five Below Inc. (NASDAQ:FIVE), a specialty retailer offering a range of merchandise for teen and pre-teen customers, reports Q3 earnings on Thursday, and analysts expect EPS of 13 cents, a 30% jump, on 23% revenue growth to $245 million. The teen- and tween-focused retail chain is coming off a strong Q2, when fidget spinners fattened sales and margins.
Last quarter, the company outpaced the Consensus Estimate by 15.4%. Notably, it has surpassed earnings estimates in the trailing four quarters with an average beat of 8.7%.
The company has a remarkable history. It persisted with positive earnings surprise streak for the eighth straight quarter, when it reported second-quarter fiscal 2017 results.
The current Consensus Estimate for the quarter under review is 13 cents, compared with a year-ago earnings of 10 cents.
Store expansions and plans to remodel others also have helped attract customers.
Wall Street will likely be looking for the company to keep up those trends as it heads further into the holiday quarter, which it depends on for much of its sales.
** OPTION TRADE: Buy the FIVE DEC 15 2017 65.000 CALL
at approximately $0.95.
Sell price is left to your own judgment.
Five Below released its third-quarter financial results, posting earnings of $0.18 per share and revenues of $257.2 million.
The company posted earnings of $0.18 per share, beating our earnings estimates of $0.13 per share.
The company saw revenue figures of $257.2 million, topping our consensus estimate of $244.93 million.
Five Below’s third-quarter revenues jumped 28.9%, spurred by an 8.5% year-over-year climb in comparable store sales.
The discount chain’s operating income soared 71.6% to hit $14.8 million. Five Below’s net income hit $9.9 million, which marked an 81.4% gain form the year-ago period.
For the fourth-quarter, Five Below now projects revenues will be between $491 million and $503 million. On top of that, the company expects to post EPS between $1.09 and $1.16.
“We are extremely pleased with our third quarter results that exceeded the high end of our sales, comp and earnings outlook,” CEO Joel Anderson said in a statement.
“This quarterly performance reflects a strong customer response to our WOW product, incredible price points, differentiated in-store experience and increasingly targeted marketing efforts. With the strength of our year-to-date performance, as well as our quarter-to-date momentum, we are raising our guidance for the year.”
At the time of the recommendation, Wednesday morning, FIVE stock price was sitting at approximately $60.25.
Currently, Five Below is up 3.56% to $63.34 per share in after-hours trading shortly after its earnings report was released.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 134% within 48 hours. This profit is likely to continue to grow in the future!
ACTION TO TAKE…….
"YOU NEED TO BE IN TO WIN"
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……