by Ian Harvey
September 22, 2017
Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Here is an overview of Bed Bath & Beyond Inc. (NASDAQ:BBBY) winning options put trade after reporting earnings. This options trade was recommended on Monday, September 18, 2017 in “Earnings Predictions for the Week Beginning September 18, 2017”, with the company reporting poor earnings on Tuesday, September 19; producing potential profits within a couple of days of executing the trade!
The Recommendation……from “Earnings Predictions for the Week Beginning September 18, 2017”
Bed Bath & Beyond Inc. (NASDAQ:BBBY) -- reports after the market's close, and the consensus earnings estimate is $0.95 per share on revenue of $3.01 billion. Investor sentiment going into the company's earnings release is only 31% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 14.41% with revenue increasing by 0.73%. Short interest has increased by 29.6% since the company's last earnings release while the stock has drifted lower by 4.8% from its open following the earnings release to be 21.5% below its 200 day moving average of $36.51. Overall earnings estimates have been revised lower since the company's last earnings release.
Bed Bath & Beyond has been reeling under sluggish mall traffic, which has been hurting performance for quite some time. Also, increased net direct-to-consumer shipping costs along with higher coupon and advertising costs are hurting results.
Consequently, the company has put up a dismal show for the last several quarters.
As well, management retained previously issued dismal bottom-line outlook for fiscal 2017, as it expects better visibility after the fiscal second quarter. Thus, the company continues to envision current-year earnings per share to decline in the range of low-single digits percentage to 10%. However, it continues to anticipate gross margin decline in fiscal 2017, alongside SG&A deleverage due to payroll and payroll-related expenses as well as technology expenses.
** Option trade to consider: Buy the BBBY OCT 20 2017 27.500 PUT at approximately $1.50.
Bed Bath & Beyond Inc. (NASDAQ:BBBY)
shares plunged after a trading halt was lifted during Tuesday’s after-hours
session as the company posted quarterly results that fell short of
The company earned $0.67 per share in
its second quarter on revenue of $2.94 billion. Revenue missed the consensus
analyst forecast by $70 million. While EPS was also a big miss - analysts were
looking for $0.95.
Bed Bath & Beyond said numerous
issues caused the big miss, including restructuring charges, Hurricane Harvey,
and a new accounting standard.
The company added that it "is undertaking a number of transformational initiatives."
Shares were recently down over 15%.
At the time of the recommendation, Monday morning, Bed Bath & Beyond Inc. stock price was sitting at $28.64.
By the time the market opened Wednesday, the stock had dropped to a low of $22.10.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 247% within a couple of days.
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……