Data Corp (NASDAQ:TECD) Option Calls
Provides 144% Profit!
by Ian Harvey
November 29, 2017
Tech Data Corp (NASDAQ:TECD)
Here is an update of Tech Data Corp’s winning options call trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, November 27, 2017 -- in the article “Earnings Predictions for the Week Beginning November 27, 2017”-- producing great potential profits of 144% within 24 hours!
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.
Tech Data Corp. reported third-quarter fiscal 2018 non-GAAP earnings of $2.00 per share and revenues of $9.14 billion, both easily beating the Consensus Estimate of $1.90 and $9.05 billion, respectively.
On a year-over-year basis, both the metrics registered an increase of 38.9% and 40.8%, respectively. Share prices were up nearly 5% in after-hours trading following the quarterly results.
This impressive performance is primarily attributed to a strong contribution from the recently acquired Technology Solutions business of Avnet. Tech Data's net sales also surged almost 37% on a constant-currency (CC) basis.
Tech Data Corporation was a big mover last session, as the company saw its shares rise more than 10% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. The stock picked up sharply from the near-flat trend of $88.75 to $93.22 in the past one month time frame.
The move came after the company reported solid third-quarter 2018 results.
At the time of the recommendation, Monday morning, THO stock price was sitting at approximately $92.43.
Tuesday trading saw the stock price hit a high of $103.86; and Wednesday had a high of $104.45.
So, for those traders who managed to
execute this trade recommended by Stock Options Made Easy; a nice tidy potential
profit of 144% within 24 hours.
ACTION TO TAKE…….
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……