by Ian Harvey
November 14, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Canada Goose Holdings Inc. (TSX: GOOS)(NYSE:GOOS)
Canada Goose reported earnings today, before the market opened, wrapped up a great earnings report. CEO Dani Reiss said “Canada Goose simply makes better stuff than others.” A call option trade was recommended to “Earnings Predictions Members on Monday, November 12, 2018, based on several issues – consumer confidence nearing an 18-year high last month, a strong start to the year in its "smallest fiscal quarter," with total revenues up 58.5% last period, and the firm's direct-to-consumer business shining as it has with in-store sales.
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Details Presented Previously……..
Specialty retailer Canada Goose Holdings Inc. (TSX: GOOS) (NYSE:GOOS), a company that is known specifically for its $900-and-up parkas with fur-trimmed hoods, will report earnings before the market opens. The consensus earnings estimate is for $0.19 per share on revenue of $149.59 million; but the Whisper number is much higher at $0.25 per share. Consensus estimates are for earnings to decline year-over-year by 17.39% with revenue increasing by 8.80%.
Consumer confidence neared an 18-year high last month. Now it looks like the 2018 holiday shopping season is shaping up to be a big one. And Canada Goose is one company that will definitely benefit from this.
Canada Goose, which sells high-priced down jackets, is coming off a strong start to the year in its "smallest fiscal quarter," with total revenues up 58.5% last period. The firm's direct-to-consumer business shined as did in-store sales.
Real growth looks like it will come during its fiscal third-quarter, which includes the holiday shopping period, with revenues projected to jump over 25% to $262.15 million.
At the bottom end of the income statement, Canada Goose's adjusted Q3 earnings are expected to soar 41.3% to reach $0.65 per share. Meanwhile, its full-year EPS figure is projected to jump 30%.
Overall earnings estimates have been revised higher since the company's last earnings release with nothing but positive earnings revisions for both its current year and the following fiscal year over the last 60 days.
OPTION TRADE to consider: Buy GOOS DEC 21 2018 60.000 CALL at approximately $5.60.
The Result So Far………
Shares of the outerwear maker exploded 17% on Wednesday following a much better than expected third quarter.
Canada Goose said earnings came in at 46 cents a share Canadian (35 cents U.S. currency), smashing estimates by 16 cents, representing an earnings surprise of 84.21%. Sales increased 34% to C$230.3 million ($174 million U.S. currency). Profit margins rose to 55.8% from 50.6% a year ago.
The company saw sales increases in all lines of business: department stores, online and within its own budding network of stand-alone retail stores.
Canada Goose lifted its full-year sales growth guidance to at least 30% from 20% previously.
Canada Goose shares have been on moving upwards since the March 2017 IPO, now up 228%.
So, for “Earnings Predictions” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 105% were available during the day.
Entering the option trade at a cost of $5.60 or less; and the price of the option reached $11.50 yesterday; a profit of 105% was made in a couple of days. Therefore, one options contract would provide a profit of $590.00.
A NICE MID-WEEK LIFT TO GAINS!
CEO Dani Reiss remains as consistent after a sizzling March 2017 IPO. Reiss said “Canada Goose simply makes better stuff (which now includes $395 sweaters) than others, and the well-to-do are willing to pay up for that premium experience every winter season.”
Reiss and his team have proven the Canada Goose brand is no flash in the pan. With the company only now venturing into knit shirts and a push likely in boots in 2019, following the acquisition of boot-maker Baffin, Canada Goose could grow into its valuation as it becomes a more complete retail brand.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that this was not the situation in this instance. But, during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach 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 – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Strategies to Consider……
It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
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