Pier 1 Imports Soars Before Earnings

Taking Profits When They Are Available!

Pier 1 Imports Inc. (NYSE:PIR) Option Calls

Provides 122% Potential Profit!

by Ian Harvey

December 14, 2017




Pier 1 Imports Inc. (NYSE:PIR)

Here is an update of Pier 1 Imports’ winning options call trade before reporting earnings. When there is ample profit to be had, it is always prudent to exit a trade before an unknown earnings report hits the table, and this is a fine example of such a situation. This options trade was recommended, to “Cut-To-The-Chase” Members of Stock Options Made Easy, on Tuesday, December 12, 2017 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, December 11, 2017”; producing excellent potential profits of 122% within 24 hours of executing the trade!


The Recommendation……

…….from “Cut-to-the-Chase” Recommendations - Week Beginning Monday, December 11, 2017”

The Details……..

Pier 1 Imports Inc. (NYSE:PIR), a global importer of imported decorative home furnishings and gifts, will release its next quarterly earnings report for the fiscal Quarter ending Nov 2017 tomorrow, Wednesday, December 13th, after the market closes.

Wall Street analysts expect Pier 1 to report earnings of $0.12 per share for the current quarter. Pier 1 posted earnings of $0.22 per share in the same quarter last year, which would suggest a negative year over year growth rate of 45.5%.

On average, analysts expect that Pier 1 Imports will report full-year earnings of $0.42 per share for the current year, with EPS estimates ranging from $0.39 to $0.46. For the next fiscal year, analysts forecast that the company will report earnings of $0.44 per share, with EPS estimates ranging from $0.35 to $0.61.

Like so many brick-and-mortar retailers, Pier 1 Imports is trying to prove to investors that it still has a place in the modern economy. In the context of a tough space, Pier 1 isn't doing that badly. Both same-store sales and adjusted EPS are expected to be roughly flat for the full year. Pier 1 has had some success on the e-commerce front, and a plan to lower its store count could help margins going forward.

Looking at the near term, there should be some room for post-earnings gains. Street expectations look low, with consensus estimates implying a 2% decline in revenue and a 50% year-over-year drop in earnings per share. Meanwhile, a number of retailers this season - among them Vera Bradley, Inc. (NASDAQ: VRA ), Foot Locker, Inc. (NYSE: FL ), and Tilly's Inc (NYSE: TLYS ) - have posted 20%+ post-earnings gains after coming in ahead of analyst estimates. Even a modest beat against soft expectations should be enough for a nice pop in PIR stock.

Longer-term, the case looks a bit tougher – therefore the short expiry date on this options trade.

The Trade……..

** OPTION TRADE: Buy the PIR DEC 15 2017 5.000 CALL at approximately $0.45.

 Sell price is left to your own judgment.

The Report………

Pier 1 Imports released earnings for third quarter that lost ground from last year.

The company said its earnings totalled $7.5 million, or $0.09 per share. This was down from $17.6 million, or $0.22 per share, in last year's third quarter.

Analysts had expected the company to earn $0.11 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company said revenue for the quarter fell 1.4% to $469.16 million. This was down from $475.90 million last year.

End Result……..

The company’s shares dropped as much as 24 percent in late trading after its earnings forecast fell well short of analysts’ estimates, hurt by a slow start to the holiday season. Sales flagged during the first two weeks of December, prompting the company to retool its promotions.

At the time of the recommendation the stock was trading at $5.28.

On Wednesday the stock was up to $5.92, or 12.1%; above the entry price.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; and exit before the earnings announcement; a nice tidy potential profit of 122% within 24 hours was to be made.



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……

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


”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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